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1h ago

Abercrombie & Fitch Shares Jump on Q3 Beat as Hollister Outperforms

Investors await a plan to restart the namesake brand’s growth following inventory-driven markdowns.

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Abercrombie & Fitch signage is seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly

Overview

  • For the quarter ended Nov. 1, revenue reached $1.29 billion versus $1.28 billion expected and EPS came in at $2.36 versus $2.16 expected, with sales up about 7% year over year.
  • Hollister led results with sales up 16% to $673.3 million and comparable sales up 15%, marking a third strong quarter for the banner.
  • The Abercrombie brand declined, with revenue down 2% to $617.4 million and comparable sales down 7% after markdowns to clear older inventory.
  • Holiday-quarter guidance calls for 4% to 6% sales growth and EPS of $3.40 to $3.70, slightly below some sales expectations but roughly in line on earnings, according to LSEG.
  • Shares rose about 16% in premarket trading, and CEO Fran Horowitz indicated Abercrombie sales are likely flat this quarter as investors look to the conference call for a recovery roadmap.