Abercrombie & Fitch (NYSE: ANF) reported better-than-expected earnings and revenue for the fiscal fourth quarter, with comparable sales and gross margin also topping expectations.

ANF shares fell around 3% at the market open.

The company announced its Q4 earnings per share (EPS) at $2.97, surpassing the analyst prediction of $2.83. Revenue came in at $1.5 billion, exceeding the consensus estimate of $1.43 billion.

Abercrombie recorded a 16% increase in comparable sales during the quarter, slightly above the 15.7% estimate. Furthermore, the gross margin was reported at 62.9%, also above the forecasted 60.2%.

Looking ahead to fiscal 2025, Abercrombie & Fitch projects a net sales growth of 4% to 6%.

"4Q results and above cons 1Q/F24 guidance underscores the strength/momentum ANF is currently seeing in their biz," Citi analysts led by Paul Lejuez said in a note covering the report.

"With shares up significantly into the print and expectations very high, we expect shares to trade flat to slightly lower today (though not because there is anything wrong with the fundamentals of the biz)," they added.

By Vahid Karaahmetovic