Shares of Abercrombie & Fitch Co ( NYSE: ANF ) gained as much as 20% this morning after the American lifestyle retailer reported a surprise profit for its third financial quarter.
ANF is ‘cautiously optimistic’ for holidays
The stock is also up on guidance.
ANF expects its Q4 sales to slide between 2.0% and 4.0% on a year-over-year basis. But that still translates to slightly better than $1.09 billion that experts had forecast. In the earnings press release , CEO Fran Horowitz said:
We have strategically adjusted our inventory receipts for holiday and early-2023, and unlike last year, we have the inventory on hand to fulfil holiday demand in the peak Black Friday to Christmas period.
Abercrombie & Fitch ended the quarter with inventories up 36% versus last year – about 92% of which, it added, was “current, long-lived, or future set”.
Nonetheless, it’s noteworthy for those interested in buying Abercrombie & Fitch stock that Wall Street has a consensus “hold” rating on it at writing.
Abercrombie & Fitch Q3 earnings snapshot
- Net loss printed at $2.2 million or 77 cents per share
- That compared to $47.2 million in net income last year
- Swung to a cent of earnings per share on an adjusted basis
- Revenue slipped 3.0% year-over-year to $880.1 million
- Consensus was 15 cents of loss on $831.1 million revenue
Abercrombie & Fitch names a new Chairman
Also on Tuesday, Abercrombie & Fitch named restaurant veteran Nigel Travis its new Chairman of the Board. He will replace Terry Burman as he retires on January 28 th .
Travis has previously served as an executive at the likes of Dunkin Brands and Papa John’s.
ANF had $617 million in total liquidity at the end of its third quarter. CEO Horowitz added:
We have reduced controllable spend where appropriate. At the same time, we’re leveraging our strong financial position to advance the long-term, strategic investments necessary to achieve our 2025 Always Forward Plan.
Abercrombie & Fitch stock is still down 45% versus its year-to-date high.
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