Abercrombie & Fitch shares jump more than 10% as retailer's torrid growth continues
Is Abercrombie's New Wedding Shop Behind Its 10% Surge?
Abercrombie & Fitch's shares surged over 10% following a report of unprecedented first-quarter performance, with a 22% sales increase and profits nearly sevenfold higher than last year. The company's transformation over the past decade has positioned it well, leading to a raised full-year sales growth forecast from 4-6% to about 10%. The retailer also introduced a new "A&F Wedding Shop," expanding its market reach.
For the upcoming quarter, what sales growth does Abercrombie anticipate, and how does this compare to analyst estimates?
For the upcoming quarter, Abercrombie & Fitch anticipates that its sales will increase by a mid-teens percentage. This projection surpasses the estimates provided by analysts, which anticipated a sales growth of up to 9%, according to data from LSEG. This indicates a strong performance expectation from Abercrombie compared to the more conservative predictions by market analysts.
What were the reported earnings per share for Abercrombie & Fitch in the fiscal first quarter, and how did this compare to the expectations?
Abercrombie & Fitch reported earnings per share of $2.14 in the fiscal first quarter. This exceeded Wall Street expectations of $1.74 per share. The company's strong performance was driven by a 22% increase in sales compared to the previous year and growth across both its Abercrombie and Hollister brands.