- Abercrombie & Fitch increased their full-year net sales forecast to a 14-15% growth range, up from the previous 12-13% prediction.
- The company expects an operating margin of around 15% for the fiscal year.
- Capital expenditures remain projected at approximately $170 million.
- In the third quarter, adjusted earnings per share (EPS) surpassed expectations at $2.50, compared to an estimated $2.37.
- Net sales for the third quarter were reported at $1.21 billion, exceeding the forecasted $1.18 billion.
- Abercrombie’s net sales reached $629.8 million, slightly above the expected $629.4 million.
- Hollister’s net sales significantly outperformed estimates, reported at $579.1 million against a predicted $552.6 million.
- Company-wide comparable sales increased by 16%, outperforming the anticipated 10.9% rise.
- The Abercrombie segment saw a comparable sales increase of 11%, close to the expectation of 11.8%.
- Hollister’s comparable sales jumped by 21%, far exceeding the anticipated 10.8% growth.
- Gross margin was recorded at 65.1%, slightly above the estimated 65%.
- The company ended the quarter with a store count of 770, nearly meeting the estimated figure of 771.75.
- Abercrombie & Fitch announced the appointment of Robert Ball as Chief Financial Officer (CFO).
- Analyst recommendations include 5 buy ratings and 5 hold ratings, with no sell ratings.
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Abercrombie & Fitch Co Cl A on Smartkarma
Independent analysts on Smartkarma, like Baptista Research, are closely following Abercrombie & Fitch Co Cl A‘s recent performance. In one report titled “Expanded Product Categories & Brand Partnerships Driving Our Optimism! – Major Drivers,” Baptista Research highlights the company’s second-quarter results for 2024. Abercrombie & Fitch exceeded expectations with a 21% growth in net sales, hitting $1.1 billion, and an impressive operating margin of 15.5%. The report delves into factors influencing the company’s stock price and conducts a valuation using a Discounted Cash Flow methodology.
Furthermore, in another analysis titled “Continuing Customer Acquisition,” Baptista Research discusses Abercrombie & Fitch’s strong start to fiscal year 2024. The company reported record sales and operating income, achieving $1 billion in net sales with a 22% year-over-year growth. Operating income soared to $130 million, marking the first quarter of 2024 as historic for Abercrombie & Fitch. With these positive developments, analysts are optimistic about Abercrombie & Fitch’s growth trajectory and future prospects.
A look at Abercrombie & Fitch Co Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead for Abercrombie & Fitch Co Cl A, the company seems to have a promising long-term outlook based on the Smartkarma Smart Scores. With a high score in Growth and Momentum, it indicates strong potential for expansion and positive market performance. Although the Value and Dividend scores are moderate, the company’s resilience score suggests a capacity to withstand economic challenges. Overall, Abercrombie & Fitch Co Cl A‘s focus on casual sportswear apparel, personal care products, and accessories for a wide demographic positions it well for future growth in the retail sector.
Abercrombie & Fitch Co Cl A is a specialty retailer known for its range of casual sportswear apparel, personal care products, and accessories catering to men, women, and kids. The Company operates through both physical stores and direct-to-consumer channels, offering a variety of products like shirts, t-shirts, jeans, outerwear, and more. With a strong emphasis on Growth and Momentum, Abercrombie & Fitch Co Cl A appears poised for continued success in the retail market, backed by its diversified product range and strategic marketing approach.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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