Abercrombie & Fitch Shares Jump 30 Percent on Upbeat Earnings Report — Retail Bum

Abercrombie & Fitch saw its shares surge 30% after the brand posted a surprise profit and raised its guidance.

“Abercrombie’s offering is resonating meaningfully with our target customer, setting several other sales records this quarter across genders, categories and geographies,” Chief Executive Officer Fran Horowitz said.

The company generated $836 million in revenue, higher than the $831 million analysts had expected. Its adjusted earnings reached 39 cents per share, much higher than the expected 5 cents per share loss, with same-store sales driving growth.

The New Albany, Ohio-based company reported $16.57 million in net income, or 32 cents per share, for the quarter ending April 29. The results marked a reversal in the company’s fortunes as during the same period the year before, the company had reported a net loss of $16.46 million, or 32 cents per share, according to CNBC.

Abercrombie’s impressive performance comes during economic uncertainty in the country. However, it shows that consumers still have an appetite for splurging on select discretionary purchases such as acid-washed jeans.

Managing director of GlobalData, Neil Saunders attributed the company’s growth to the executive team’s continued focus on understanding consumers’ needs and evolving preferences.

“Once they have discerned this, they know how to go about delivering this in an efficient and effective way,” Saunders said.

Photo credit: Abercrombie & Fitch

Originally published at https://retailbum.com on May 31, 2023.