Abercrombie & Fitch soars on earnings beat, raised outlook
Investing.com -- Abercrombie & Fitch Co. (NYSE: ANF) reported second-quarter earnings and revenue that exceeded analyst expectations, raising its full-year guidance and sending shares up over 11% premarket.
The apparel retailer posted adjusted earnings per share of $4.17, beating the analyst consensus of $1.98 by $2.19. Revenue reached $1.3 billion, up 5% YoY and above the $1.25 billion estimate. The results included approximately $100 million in pre-tax IEEPA tariff refunds, which contributed $1.75 per diluted share. Operating margin came in at 20%, well above the company's prior outlook of around 10%.
Net sales grew across all regions, with the Americas up 5%, APAC up 19%, and EMEA up 2%. Both brands achieved record second quarter sales, with Abercrombie brands up 8% and Hollister up 2%. Comparable sales were flat for the quarter.
"We delivered record second quarter net sales and our 15th consecutive quarter of growth, reflecting our teams' continued focus on serving customers with compelling product, marketing, and experiences," said CEO Fran Horowitz.
For the third quarter, Abercrombie & Fitch expects earnings per share of $2.90 to $3.20, with a midpoint of $3.05 that exceeds the analyst consensus of $2.85. The company projects net sales growth of 5% to 6%.
The company raised its full-year outlook, now expecting earnings per share of $13.10 to $13.60, compared to the previous range of $10.20 to $11.00. The midpoint of $13.35 is above the analyst consensus of $10.73.
Full-year net sales growth is now expected to be around 5%, up from the prior range of 3% to 5%. Operating margin is projected at 14.5% to 15.0%, including around 220 basis points of favorability from IEEPA tariff refunds.
