Abercrombie: 4th quarter profit ahead of expectations
March 06, 2024 at 08:25 am EST
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Abercrombie & Fitch reported a better-than-expected 4th quarter profit on Wednesday, thanks to stronger-than-expected sales growth over the period.
The American brand, very popular with teenagers and young adults, posted an operating profit of 223 million euros for the three months to the end of January, compared with 87 million a year earlier.
Earnings per share came to 2.97 dollars, compared with analysts' expectations of 2.83 dollars.
Quarterly sales rose by 21% to 1.5 billion euros, exceeding both consensus and the targets set by the Ohio-based group.
"After several years of transforming our brands, teams and operating model, fiscal 2023 has been a defining year for our company," said CEO Fran Horowitz.
The company, which also owns the Hollister brand, confirmed its long-term goal of reaching annual sales of five billion dollars.
For the immediate future, Abercrombie says it expects sales for its new fiscal year to be up 4% to 6% on the $4.3 billion generated last year.
In pre-market trading, the stock lost more than 2%, but its gains since the beginning of the year are close to 60%.
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Abercrombie & Fitch Co., through its subsidiaries, is a global, digitally led omnichannel retailer. The Company offers a range of assortment of apparel, personal care products and accessories for men, women, and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements. The Companyâs brands include Abercrombie brands, which includes Abercrombie & Fitch and abercrombie kids, and Hollister brands, which includes Hollister and Gilly Hicks. Its geographic segments include Americas, EMEA, and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The Company operates 40 international franchise stores across the Companyâs brands primarily located within the Americas and EMEA region.