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Abercrombie Fitch Co Reports Financial Results for Q3 2024

authorIntellectia.AI

2024-11-262mins

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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