ANF - Abercrombie & Fitch soars after earnings topper guidance lift
2023-05-24 07:41:43 ET
Abercrombie & Fitch Co. ( NYSE: ANF ) shot up in early trading on Wednesday after smashing estimates with its Q1 earnings report and lifting full-year guidance.
Total sales were up 3% during the quarter and rose 4% on a constant currency basis. Comparable sales were also up 3% during the quarter, led by a 14% gain for the retailer's namesake brand to offset a 6% decline for Hollister.
Gross profit rate improved 570 basis points during the quarter to 61.0% of sales. The year-over-year improvement was primarily driven by a benefit of 760 basis points from lower freight costs and 230 basis points from year-over-year AUR growth partially offset by 320 basis points from higher cotton and raw material costs and 100 basis points from the adverse impact from foreign currency.
Operating income was $38M on an adjusted non-GAAP basis vs. -$6M a year ago.
A&F ended the quarter with an inventory position 20% lower year-over-year at $448M. On the balance sheet, ANF ended the quarter with a cash position of $447M and long-term gross borrowings under the company’s senior secured notes of $300M.
Looking ahead, Abercrombie & Fitch ( ANF ) sees full-year net sales of +2% to +4% vs. +1% to +3% prior outlook.
Shares of Abercrombie & Fitch soared 19.51% in premarket trading to $27.14.
More on Abercrombie & Fitch:
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- Seeking Alpha's Quant Rating for Abercrombie & Fitch
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Abercrombie & Fitch soars after earnings topper, guidance lift