Abercrombie & Fitch Co. Reports Financial Results for Q3 2024
Abercrombie & Fitch Co. (NYSE: ANF) announced its financial results for the third quarter ending November 2, 2024. The company experienced growth in various financial metrics, reaffirming its strategic initiative successes.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates | Variance to Estimates |
|---|---|---|---|---|---|
| Total Revenue | $1.2 billion | $1.053 billion | +14% | $1.18 billion | Above by $0.02 billion |
| Earnings Per Share (EPS) | $2.50 | $1.83 | +37% | $2.22 | Above by $0.28 |
The financial performance showed strong growth, with net sales of $1.2 billion, which marked a 14% increase year-over-year. The company's EPS also exceeded expectations, reaching $2.50, which is a notable 37% increase compared to the previous year, and surpassed the consensus estimates of $2.22.
Segment Revenue Performance
| Segment | Revenue | Guidance Comparison |
|---|---|---|
| Abercrombie | +15% | Consistent |
| Hollister | +14% | Consistent |
The company's segment performance underlined robust growth across both Abercrombie and Hollister brands. Abercrombie achieved a 15% increase in revenue, with strong customer responses, while Hollister saw a 14% rise. Both segments performed in line with previous guidance.
Operational Highlights
- Operating margin improved by 170 basis points to 14.8%.
- Operating income rose by 30% to $179 million.
- Repurchased 924,000 shares for $130 million year-to-date.
- Increased full-year outlook for net sales growth of 14% to 15%.
Executive Commentary
Fran Horowitz, Chief Executive Officer, remarked, 'Our team has delivered double-digit net sales growth for the sixth consecutive quarter. This success is the result of our strategic execution across regions and brands. We’re pleased to raise our full-year outlook and are positioned to deliver sustainable, profitable growth.'
Share Repurchase Program
Abercrombie & Fitch has repurchased approximately 920,000 shares year-to-date for $130 million, representing 1.8% of shares outstanding. $102 million remains authorized for future repurchases.
Forward Guidance
The company has increased its full-year outlook to anticipate net sales growth of 14% to 15% and operating margins around 15%.
Stock Price Movement
Following the earnings release, Abercrombie & Fitch Co.'s stock price experienced a positive adjustment, rising by approximately 1.65%.
This robust financial report reflects Abercrombie & Fitch Co.'s strong market position and signifies potential future growth as the brand continues to leverage its comprehensive regional strategies.
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