We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abercrombie & Fitch Co. (ANF - Free Report) just posted a record first quarter as it remains one of the hottest retailers. This Zacks Rank #1 (Strong Buy) recently raised full year sales guidance.
Abercrombie & Fitch is a specialty retailer of apparel and accessories for men, women and kids. Founded in 1892, Abercrombie & Fitch consists of 5 global brands including Hollister, Gilly Hicks, Abercrombie & Fitch, abercrombie kids and Social Tourist.
It operates 750 stores across North America, Europe, Asia and the Middle East as well as e-commerce sites.
Another Big Beat in Fiscal First Quarter 2024
On May 29, 2024, Abercrombie & Fitch reported its fiscal first quarter 2024 results and blew by the Zacks Consensus Estimate for the fifth quarter in a row.
Earnings were $2.14 which was a 28.9% beat on the Zacks Consensus which was looking for $1.66.
Net sales rose 22% to $1 billion from $835 million last year. It was the highest first quarter net sales in company history.
Abercrombie is crushing it on the comparable-store-sales metric, a key metric for retailers. Comparable-store-sales rose 21% globally year-over-year. In the Americas, they were up 21%, in EMEA up 23% and APAC was up 22%.
By brand, it was Abercrombie which led the charge with comparable sales up 29% and Hollister up 13%. One area that has shown growth is the company's new "Wedding Shop" collection which was launched in March and has rolled out to every store and online. It sells women's dresses and outfits for attending weddings.
The Wedding Shop is already beating expectations and there hasn't even been a full wedding season yet. Abercrombie also launched men's suits in the stores for more formal occasions.
Other metrics also improved. Gross profit rate rose 540 basis points to 66.4%.
And inventories, which had exploded higher at many retailers during the pandemic, remain relatively unchanged year-over-year. As of May 4, 2024, inventories were at $449 million, up from $448 million on Apr 29, 2023.
Raised Full Year Guidance
Given the red-hot start to the year, it's not surprising that Abercrombie raised its full year sales guidance to a gain of 10% up from its prior guidance of growth of 4% to 6%.
The analysts are bullish too as they've been revising their earnings estimates higher since the earnings report.
3 estimates have been raised for fiscal 2024 in the last 7 days. This has pushed the Zacks Consensus up to $9.26 from $8.45. That's earnings growth of 47.4% compared to last year, where the company only made $6.28.
Analysts are bullish on fiscal 2025 too. 3 estimates have been revised higher in the last week there too, but earnings are still expected to fall 1.4%. But it's still very early to be looking at fiscal 2025.
Image Source: Zacks Investment Research
Stock Soars to New Highs
Abercrombie shares have been on a tear for the last year, gaining 402% during that time.
Image Source: Zacks Investment Research
The stock doesn't seem to want to take much of a timeout in 2024. Yet it's also not that expensive on a P/E basis. It trades at 18.7x forward earnings.
For investors looking for the next hot retail name, Abercrombie & Fitch should be on your short list.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bull of the Day: Abercrombie & Fitch (ANF)
Abercrombie & Fitch Co. (ANF - Free Report) just posted a record first quarter as it remains one of the hottest retailers. This Zacks Rank #1 (Strong Buy) recently raised full year sales guidance.
Abercrombie & Fitch is a specialty retailer of apparel and accessories for men, women and kids. Founded in 1892, Abercrombie & Fitch consists of 5 global brands including Hollister, Gilly Hicks, Abercrombie & Fitch, abercrombie kids and Social Tourist.
It operates 750 stores across North America, Europe, Asia and the Middle East as well as e-commerce sites.
Another Big Beat in Fiscal First Quarter 2024
On May 29, 2024, Abercrombie & Fitch reported its fiscal first quarter 2024 results and blew by the Zacks Consensus Estimate for the fifth quarter in a row.
Earnings were $2.14 which was a 28.9% beat on the Zacks Consensus which was looking for $1.66.
Net sales rose 22% to $1 billion from $835 million last year. It was the highest first quarter net sales in company history.
Abercrombie is crushing it on the comparable-store-sales metric, a key metric for retailers. Comparable-store-sales rose 21% globally year-over-year. In the Americas, they were up 21%, in EMEA up 23% and APAC was up 22%.
By brand, it was Abercrombie which led the charge with comparable sales up 29% and Hollister up 13%. One area that has shown growth is the company's new "Wedding Shop" collection which was launched in March and has rolled out to every store and online. It sells women's dresses and outfits for attending weddings.
The Wedding Shop is already beating expectations and there hasn't even been a full wedding season yet. Abercrombie also launched men's suits in the stores for more formal occasions.
Other metrics also improved. Gross profit rate rose 540 basis points to 66.4%.
And inventories, which had exploded higher at many retailers during the pandemic, remain relatively unchanged year-over-year. As of May 4, 2024, inventories were at $449 million, up from $448 million on Apr 29, 2023.
Raised Full Year Guidance
Given the red-hot start to the year, it's not surprising that Abercrombie raised its full year sales guidance to a gain of 10% up from its prior guidance of growth of 4% to 6%.
The analysts are bullish too as they've been revising their earnings estimates higher since the earnings report.
3 estimates have been raised for fiscal 2024 in the last 7 days. This has pushed the Zacks Consensus up to $9.26 from $8.45. That's earnings growth of 47.4% compared to last year, where the company only made $6.28.
Analysts are bullish on fiscal 2025 too. 3 estimates have been revised higher in the last week there too, but earnings are still expected to fall 1.4%. But it's still very early to be looking at fiscal 2025.
Image Source: Zacks Investment Research
Stock Soars to New Highs
Abercrombie shares have been on a tear for the last year, gaining 402% during that time.
Image Source: Zacks Investment Research
The stock doesn't seem to want to take much of a timeout in 2024. Yet it's also not that expensive on a P/E basis. It trades at 18.7x forward earnings.
For investors looking for the next hot retail name, Abercrombie & Fitch should be on your short list.