Overview
- Third-quarter net sales rose about 7% to roughly $1.29–$1.30 billion, with earnings per share of $2.36 topping the $2.16 consensus.
- Hollister led growth with 16% net sales and 15% comparable sales, while the Abercrombie brand declined 2% with comps down 7%.
- Full-year guidance narrowed to 6%–7% net sales growth and $10.20–$10.50 EPS, with the operating margin outlook held at 13%–13.5%.
- Fourth-quarter outlook calls for 4%–6% net sales growth and $3.40–$3.70 EPS, and management is aiming for roughly flat Q4 sales at the Abercrombie banner.
- Q3 operating margin was 12% with about 210 basis points of tariff headwinds and a $38.6 million litigation benefit for the year; the company repurchased $100 million in shares as the stock closed up more than 37% Tuesday.