Earnings

Abercrombie & Fitch surges more than 30% after reporting surprise profit

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Pedestrians pass in front of an Abercrombie & Fitch Co. store in San Francisco.
David Paul Morris | Bloomberg | Getty Images

Shares of Abercrombie & Fitch soared more than 30% on Wednesday after the mall retailer beat estimates, raised its guidance and reported a surprise profit. 

Here’s how Abercrombie did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: 39 cents, adjusted, vs. a loss of 5 cents expected
  • Revenue: $836 million vs. $815 million expected

The company’s reported net income for the three-month period that ended April 29 was $16.57 million, or 32 cents a share, compared with a loss of $16.46 million, or 32 cents a share, a year earlier. Excluding one-time items, Abercrombie reported per-share profit of 39 cents in the quarter.

Sales rose nearly 3% to $836 million from $812.8 million a year earlier.

Same-store sales were up 3% in the quarter, versus Street Account estimates of a 1% decline.

The apparel retailer raised its guidance following the earnings beat. For fiscal 2023, it now expects net sales to grow between 2% and 4%, compared with a previous range of 1% to 3%. It now expects its operating margin to be in the range of 5% to 6%, compared with its previous outlook of 4% to 5%.

For the fiscal second quarter, the company expects net sales to grow 4% to 6% and an operating margin in the range of 2% to 3%.

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