Abercrombie & Fitch gains on earnings beat despite revenue miss
Investing.com -- Abercrombie & Fitch Co. (NYSE: ANF) reported first-quarter results that exceeded earnings expectations while revenue fell slightly short, sending shares up 4.3% premarket as investors focused on the company's profitability.
The retailer posted adjusted earnings per share of $1.47, beating the analyst consensus of $1.29 by $0.18. However, revenue of $1.1 billion came in below the $1.12 billion estimate, though it represented a 2% increase from the prior year period. The company achieved an operating margin of 8.0% with comparable sales declining 1%.
Regional performance was mixed, with Americas net sales rising 3% and APAC surging 24%, while EMEA declined 10% as demand softened amid the Middle East conflict. By brand, Abercrombie grew 3% while Hollister remained flat compared to last year.
"We delivered record first quarter net sales and our 14th consecutive quarter of growth, reflecting our teams' consistent execution for our customers amid a dynamic global environment," said CEO Fran Horowitz. "Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook."
For the second quarter, Abercrombie expects net sales growth of 2% to 4% with earnings per share of $1.80 to $2.00. The midpoint of $1.90 compares to the analyst consensus, though no specific estimate was provided for the second quarter.
The company maintained its full-year outlook, projecting net sales growth of 3% to 5% and earnings per share of $10.20 to $11.00. The midpoint of $10.60 falls below the analyst consensus of $10.71. The company expects to repurchase around $450 million in shares for the year.
