Clothing retailer Abercrombie & Fitch (ANF) has issued financial results for this year’s third quarter that beat analyst estimates across the board.
The Ohio-based company has reported earnings per share (EPS) of $2.50 U.S., which was well ahead of the $2.39 U.S. consensus forecast on Wall Street.
Revenue in the period totaled $1.21 billion U.S., which beat the $1.19 billion U.S. that was expected among analysts. Sales were up 14% from a year earlier.
It was the sixth consecutive quarter of double-digit sales growth at the company. The recent arrest of the company’s former CEO Mike Jeffries for sex trafficking did not impact the results.
Management at Abercrombie & Fitch provided a robust forecast for the current year-end holiday quarter, saying they expect sales growth of 5% to 7%, ahead of the 4.8% expected by analysts.
For the entire year, the company is expecting sales to rise 14% to 15%, higher than the 12% to 13% it previously forecast. The new outlook is higher than 12% growth expected on Wall Street.
The Abercrombie and Hollister brands posted comparable sales growth of 11% and 21%, respectively.
To keep momentum going, Abercrombie & Fitch is focusing on new international markets, and has launched new sales categories, such as a wedding collection and a partnership with the National Football League (NFL).
The company is also developing its Hollister brand that caters to Generation Z shoppers. During the quarter, sales at Hollister accounted for nearly half of all revenue.
Management at Abercrombie & Fitch said they are bullish heading into the year-end holiday shopping season, saying that consumer sentiment appears to have improved in recent months.
The stock of Abercrombie & Fitch is down 3% in premarket trading on news of its Q3 print. So far this year, the stock has risen 70% to trade at $154.50 U.S. per share.
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