Abercrombie: guidance raised after 'record' quarter

(CercleFinance.com) - Abercrombie & Fitch raised its growth forecast for the current financial year on Wednesday, after reporting 'record' sales for the quarter just ended.


The US ready-to-wear group - very popular with teenagers and young adults - now expects sales to rise by 12% to 13% in 2024/2025, up from a previous target of 'around 10%'.

In Q2, which ended at the beginning of August, the company recorded sales of $1.1bn, up 21%, including an 18% LFL increase.

The Abercrombie brand posted growth of 26%, while Hollister saw itss accelerate to 17%. In geographical terms, the Americas region led the way (+23%), ahead of the EMEA region (+16%).

Operating profit was $176m, compared with $90m a year earlier.

EPS was $2.50, more than doubling y-o-y ($1.10 a year earlier).

In its press release, Abercrombie also said that it had raised its annual operating margin target to 14%-15% from around 14% previously, but nevertheless referred to an increasingly uncertain environment.

Note the share was down 10% on Wednesday morning in pre-market trading.


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