An Abercrombie & Fitch store sits in midtown Manhattan in New York on October 24, 2024.
Spencer Platt | Getty Images
Actions of Abercrombie & Fitch soared 16% in premarket trading Tuesday after the company posted 7% growth in quarterly sales and released its holiday forecast.
Abercrombie, which runs its namesake brand and Hollister, expects fourth-quarter sales to rise between 4 percent and 6 percent, well below Wall Street’s expectations of 5.6 percent growth, according to LSEG. He expects earnings per share to be between $3.40 and $3.70, roughly in line with expectations of $3.55 per share.
The company’s namesake banner has fueled its comeback in recent years, but now that the Abercrombie brand’s growth has started to slow, Hollister has taken over. CEO Fran Horowitz said Abercrombie’s sales are expected to be flat in the current quarter, indicating that Hollister’s growth should boost the company’s holiday shopping season.
Abercrombie beat Wall Street’s earnings and bottom line expectations during the fiscal third quarter. Here’s how the clothing retailer performed in the period ended Nov. 1, compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $2.36 versus $2.16 expected
- Income: $1.29 billion versus $1.28 billion expected
The company’s reported net income for the quarter was $113 million, or $2.36 per share, compared with $131.98 million, or $2.50 per share, a year earlier.
Sales reached $1.29 billion, up about 7% from $1.21 billion a year earlier.