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Abercrombie & Fitch: annual targets revised upwards

(CercleFinance.com) - Abercrombie & Fitch Co.
announced on Tuesday that it had raised its annual targets after reporting "record" sales for the quarter just ended.

The US ready-to-wear brand reported sales of $1.2bn for the quarter ended in early November, up 14% y-o-y and the sixth consecutive quarter of double-digit growth.

Its operating profit came to $179m, compared with $138m a year earlier, representing earnings per share (EPS) of $2.50, above the Wall Street consensus of $2.22.

After such a strong performance, Abercrombie is now targeting annual sales growth of between 14% and 15%, compared with 12% to 13% previously, accompanied by an operating margin of around 15%, rather than the 14%-15% previously expected.

Despite this solid publication, the stock lost 1.5% in pre-market trading on Tuesday morning on Wall Street, the victim of some profit-taking after a gain of over 75% this year.


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