Abercrombie & Fitch Co. Reports Fourth Quarter and Full Year Results

Core Insights - Abercrombie & Fitch Co. reported strong financial results for fiscal 2024, achieving a 16% increase in net sales to nearly $5 billion and expanding operating margin to 15% [2][4][5] - The company anticipates continued profitable growth in fiscal 2025, with projected net sales growth of 3% to 5% and an operating margin between 14% and 15% [4][13] Financial Performance - For the fourth quarter ended February 1, 2025, net sales reached $1.58 billion, a 9% increase year-over-year, with comparable sales growth of 14% [4][5] - Full year net sales totaled $4.95 billion, up 16% from the previous year, driven by a 17% increase in comparable sales [4][5] - Operating income for the full year was $741 million, compared to $485 million in the previous year, reflecting a significant increase in profitability [5][8] Earnings and Shareholder Returns - Net income per diluted share for the fourth quarter was $3.57, up from $2.97 in the prior year, while for the full year, it was $10.69, a 72% increase from $6.22 [3][4][8] - The company repurchased approximately 1.6 million shares for $230 million during fiscal 2024, representing a 3% reduction in shares outstanding [10][12] Segment Performance - In the Americas segment, net sales increased by 17% for the full year, while the EMEA segment saw a 12% increase [6][43] - The Hollister brand experienced a 15% increase in net sales for the full year, with comparable sales growth of 19% [4][6] Cash Flow and Liquidity - As of February 1, 2025, the company had cash and equivalents of $773 million and marketable securities of $116 million [9][18] - The company announced a new $1.3 billion share repurchase authorization, with expectations to repurchase $400 million in shares during fiscal 2025 [4][12] Outlook - The company expects net income per diluted share for fiscal 2025 to be in the range of $10.40 to $11.40, with a first quarter outlook for net sales growth of 4% to 6% [4][13] - Capital expenditures for fiscal 2025 are projected to be approximately $200 million, with plans for around 40 net store openings [13][14]