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Abercrombie & Fitch Q1 Earnings Up 22%, Sales Hit $1.02B, Raises Annual Forecast

May 29, 2024, 11:41 AM

Abercrombie & Fitch has reported a significant increase in its first-quarter earnings, exceeding market expectations. The company posted an adjusted EPS of $2.14, surpassing the estimated $1.73. Total sales reached $1.02 billion, up 22% year-over-year, beating the forecasted $963.26 million. Comparable sales grew by 21%, with Abercrombie brand sales increasing by 31.1% and Hollister brand sales up by 12.3%. Net income surged by 587%. Following these strong results, Abercrombie & Fitch has raised its annual sales growth forecast, now expecting net sales to rise by around 10% for the full year, compared to the previous outlook of 4-6%. The company also anticipates an operating margin of around 14%. This marks the highest first-quarter net sales in the company's history. The company attributes the growth to its new and trendy apparel and accessories. Abercrombie & Fitch's stock is trading at new all-time highs, up 3.58% in pre-market trading.