Abercrombie & Fitch (ANF.N) opened a new tab on Wednesday, raising its full-year sales and profit estimates as the retailer’s shares rose more than 22% in early trade due to strong demand for its clothing brands, including its namesake Abercrombie label.
With its teen-focused brand, Hollister, which has traditionally profited from seasonal spending, the New Albany, Ohio-based company entered the critical back-to-school shopping season with momentum.
During a post-earnings conference call, Hollister CEO Fran Horowitz stated that the company’s back-to-school momentum was still growing as the second quarter came to an end.
Compared to its previous projection of 3% to 5%, the company now anticipates a 5% increase in full-year net sales.
Rivals like American Eagle Outfitters, Gap, Urban Outfitters, and Zara fight fiercely with Abercrombie & Fitch for a comparable clientele of young, fashion-conscious consumers.
According to GlobalData managing director Neil Saunders, the company’s growth was mostly driven by the namesake Abercrombie brand, which benefited from increased spending from core customers and a robust range.
According to Telsey Advisory Group analyst Dana Telsey, sales exceeded projections for strengthening Abercrombie trends and reducing EMEA pressure at Hollister.
After collecting tariff refunds under the International Emergency Economic Powers Act for the fiscal year, the store has increased its annual earnings per share prediction from $10.20 to $11.00 to $13.10 to $13.60.
The company announced quarterly earnings per share of $4.17, exceeding analysts’ estimate of $1.99 per share. The company’s shares have dropped more than 10% so far this year.
According to figures gathered by LSEG, quarterly sales was $1.27 billion, little higher than experts’ forecast of $1.25 billion.
