Abercrombie & Fitch Reports Record Q1 Earnings, Sales Up 22%, EPS $2.14, Raises 2024 Forecast

May 29, 2024, 12:22 PM

Abercrombie & Fitch has reported record-breaking first-quarter earnings, significantly surpassing analyst expectations. The company's Q1 2024 net sales reached $1.02 billion, up 22% year-over-year, with comparable sales growth of 21%. Adjusted earnings per share (EPS) came in at $2.14, far exceeding the estimated $1.73. Abercrombie's net income surged by 587%, and its gross margin hit 66.4%, above the expected 64.4%. The brand's performance was strong across its segments, with Abercrombie sales increasing by 31.1% and Hollister sales by 12.3%. Following these results, Abercrombie & Fitch raised its annual sales growth forecast for 2024 to around 10%, up from the previous outlook of 4%-6%. The company's stock has also seen significant growth, trading at new all-time highs and up more than 700% over the past year. The operating margin is expected to be around 14%, and the operating income reached $130 million.