Abercrombie & Fitch (NYSE: ANF) reported Q3 EPS of $1.83, $0.68 better than the analyst estimate of $1.15. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $979.99 million.

The following outlook replaces all previous full year guidance. For fiscal 2023, the company now expects:

• Net sales growth of 12% to 14% from $3.7 billion in 2022. This is an increase to the previous outlook of growth of around 10%. Also, fiscal 2023 includes a 53rd week for reporting purposes, along with net store expansion. The 53rd week is estimated to add approximately $45 million to total net sales in the fourth quarter and full year of 2023.
• Operating margin to be around 10%. This range improves from the previous outlook of in the range of 8% to 9%. The current outlook includes a benefit of around 250 basis points from full year 2022 levels on expected net improvement in freight and raw material costs, and modest operating expense leverage with sales growth expected to more than offset higher expenses from the combination of inflation and increased investments for the 2025 Always Forward Plan initiatives, including an upgrade of our retail merchandising ERP system.
• Effective tax rate to be in the low 30s. This replaces the previous outlook of low-to-mid 30s. The current outlook assumes the continued inability to realize benefits on certain expected tax losses incurred outside of the U.S., although to a lesser extent than previously projected, primarily due to higher worldwide income levels.
• Capital expenditures of approximately $160 million.

For the fourth quarter of fiscal 2023, the company expects:

• Net sales growth to be up low double-digits compared to fiscal fourth quarter 2022 level of $1.2 billion. Included in this outlook is the expected benefit of approximately 375 basis points from the 53rd financial reporting week.
• Operating margin to be in the in the range of 12% to 14% compared to an adjusted operating margin of 7.7% in Q4 2022. We expect the year-over-year improvement to be driven by a higher gross profit rate on lower freight costs and higher AURs.
• Effective tax rate to be around 30%. This outlook assumes the continued inability to realize benefits on certain expected tax losses incurred outside of the U.S.

For earnings history and earnings-related data on Abercrombie & Fitch (ANF) click here.