Clothing retailer Abercrombie & Fitch (ANF) has reported second-quarter financial results that beat Wall Street forecasts on both the top and bottom lines.
The Ohio-based retailer announced earnings per share (EPS) $2.50 U.S., which was ahead of the $2.22 U.S. consensus expectation of analysts.
Revenue in the quarter totaled $1.13 billion U.S., which also beat the $1.10 billion U.S. estimate on Wall Street. Sales were up 21% from a year earlier.
During Q2, same store sales increased 18%, driven by better-than-expected summer and back-to-school shopping trends.
In addition to the strong Q2 results, Abercrombie & Fitch also raised its forward guidance for the current third quarter.
The company said that it expects sales to rise by a low double digit percentage, which is better than the 8.9% growth that analysts had penciled in.
Abercrombie & Fitch also raised its full-year sales guidance from 10% growth to a range of 12% to 13%. That was inline with the 12% growth expected on Wall Street.
Importantly, the retailer’s current fiscal year in 2024 has one fewer week than in 2023, which is likely impacting its full-year guidance.
Specifically, Abercrombie & Fitch said that the loss of one selling week will result in an $80 million U.S. hit to its year-end holiday sales quarter.
Over the last year, Abercrombie has become the U.S. retail sector’s biggest comeback story. In recent quarters the company has been focusing on international expansion and a new line of children’s clothing.
The stock of Abercrombie & Fitch was down 10% in premarket trading on news of the inline forward guidance.
However, prior to today (Aug. 28), the company’s stock had gained 237% over the last 12 months and was trading at $166.61 U.S. per share.
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