Abercrombie is drawing shoppers, but investors want more
Bloomberg
Abercrombie & Fitch
The company now sees 2024 net sales rising 12% to 14%, compared to about 10%. In the third quarter, it saw comparable sales rise 16%, ahead of an estimated 10.3%. Adjusted earnings per share of $1.83 beat estimates of $1.15 per share.
Still, shares of Abercrombie were down 6.8% as of 9:54 a.m. in New York, taking a pause from a remarkable run so far this year. Shares are up 216% year to date, compared with 2% for the S&P SmallCap 600 Index, marking a retail transformation of a company that lost favor with teens a decade ago but managed to reinvent itself and become cool again.
The bear argument to this “massive” beat is that with the stock up 216% so far this year, the bar was “very high” and these results won’t shock investors, Vital Knowledge’s Adam Crisafulli wrote.
Rival apparel chain American Eagle Outfitters
For the Abercrombie brand, net sales are up 30% year-over year. Net sales have risen 11% at Hollister
“Entering the important holiday season, our fiscal 2023 year-to-date results give us the confidence that we can continue to deliver for our customers and drive profitable growth,” Abercrombie Chief Executive Officer Fran Horowitz said in a statement on Tuesday.
