Shares of Abercrombie & Fitch (NYSE:ANF) have been wanting dapper as we speak because the preppy clothier jumped on a powerful earnings report. Same-store gross sales rose four% within the quarter, resulting in considerably higher outcomes than anticipated. As of 12:58 p.m. EST, the inventory was up 25.1%.
Image supply: Abercrombie & Fitch.
Overall income was up 5% to $859.1 million, which was a lot better than expectations of $820 million. Performance at Hollister was spectacular as soon as once more, with comparable gross sales up eight%, whereas comps dipped 2% at namesake Abercrombie & Fitch shops. Domestic outcomes have been additionally stable, with same-store gross sales up 6% in comparison with flat development overseas.
Adjusted earnings per share surged from $zero.02 to $zero.30, beating estimates of $zero.22, as retailer working and distribution bills fell 320 foundation factors. CEO Fran Horowitz mentioned, “We are pleased by the clear progress across all brands, delivering another quarter of sequential comparable sales improvement, and a return to positive comparable sales.” She additionally credited “disciplined expense management” for the bottom-line approval.
Guidance for the vacation quarter was additionally stable: The firm sees same-store gross sales rising within the low single digits, and a 1-percentage-point lower in working bills, indicating earnings per share must be up considerably from $zero.75 within the quarter a 12 months in the past.
Abercrombie continues to be solely on observe to publish minimal income for the 12 months, as its first-half efficiency was dismal. But due to a greater merchandise badortment and improved price administration, the bottom-line enchancment ought to carry over into subsequent 12 months.
Jeremy Bowman has no place in any of the shares talked about. The Motley Fool has no place in any of the shares talked about. The Motley Fool has a disclosure coverage.