A&F(US:ANF) CNBCยท2024-11-26 12:36Core Insights - Abercrombie & Fitch continues to show strong performance with its sixth consecutive quarter of double-digit sales growth and results exceeding expectations [2] - The company reported earnings per share of $2.50, surpassing the expected $2.39, and revenue of $1.21 billion, slightly above the anticipated $1.19 billion [2] - The recent arrest of former CEO Mike Jeffries for sex trafficking did not negatively impact the company's financial results [2] Financial Performance - Sales increased to $1.21 billion, reflecting a 14% rise from $1.06 billion a year prior [3] - For the upcoming holiday shopping quarter, Abercrombie anticipates sales growth of 5% to 7%, exceeding the 4.8% growth forecast by analysts [3] - The full-year sales growth expectation has been revised to between 14% and 15%, higher than the previous estimate of 12% to 13% and above the 12.1% growth expected by analysts [3] Regional and Brand Performance - CEO Fran Horowitz highlighted broad-based growth across regions, with the Americas growing 14%, EMEA 15%, and APAC 32% [4] - Comparable sales growth for Abercrombie and Hollister brands was reported at 11% and 21%, respectively, building on last year's strong performance [5] - Hollister's sales rose 14%, contributing nearly half of the total revenue during the quarter [7] Strategic Initiatives - The company is focusing on international markets for growth and has expanded into new categories, including a wedding collection and a partnership with the NFL [6] - Efforts are being made to develop the Hollister brand, which targets Gen Z shoppers, while ensuring differentiation from the Abercrombie brand aimed at millennials [6] Market Sentiment - Following the recent election, consumer sentiment has improved, which is expected to positively influence spending during the holiday season [8] - The shift from cautious tones in previous earnings reports to a more optimistic outlook reflects the changing market dynamics post-election [8]