Investing.com -- Abercrombie&Fitch Company (NYSE:ANF) on Tuesday reported better-than-expected Q3 results and raised its outlook for the current fiscal 2024, but its shares fell more than 4% in premarket trading.
The retailer posted third-quarter earnings per share (EPS) of $2.50, topping analysts’ expectations of $2.38.
Revenue was reported at $1.2 billion, also coming in above the consensus estimate of $1.18 billion.
Net sales for the Abercrombie brand totaled $629.8 million, slightly surpassing estimates of $629.4 million, while Hollister delivered net sales of $579.1 million, significantly beating projections of $552.6 million.
Comparable sales grew by an impressive 16%, well above the forecasted 10.9%.
By segment, Abercrombie saw an 11% increase in comparable sales, in line with estimates of 11.8%, while Hollister surged by 21%, far exceeding expectations of 10.8%.
Gross margin for the quarter was 65.1%, slightly ahead of the 65% estimate.
“For the sixth consecutive quarter, our global team delivered double-digit net sales growth. This great sales performance led to better-than-expected results on both the top and bottom lines,” said Fran Horowitz, Chief Executive Officer of Abercrombie&Fitch.
“Each of our regions grew double-digits in the quarter, with the Americas growing 14%, EMEA growing 15% and APAC growing 32%.”
The company raised its full-year outlook, now anticipating net sales growth of 14% to 15%, up from the prior forecast of 12% to 13%. Operating margin guidance was also adjusted upward to approximately 15%, compared to the earlier range of 14% to 15%.
Alongside quarterly results, Abercrombie&Fitch announced that Robert Ball (NYSE:BALL), a long-time veteran in the company’s finance division, will be promoted to Chief Financial Officer, effective November 20, 2024.
