Abercrombie & Fitch Co (NYSE:ANF) reported upbeat second-quarter earnings on Wednesday.
Sales grew 21% Y/Y to $1.134 billion, beating the analyst consensus estimate of $1.101 billion. Comparable sales jumped18% Y/Y. Adjusted EPS of $2.50 beat the analyst consensus estimate of $2.22.
Fran Horowitz, Chief Executive Officer, said, "Although we continue to operate in an increasingly uncertain environment, we remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses."
Abercrombie expects third-quarter net sales to grow in the low double digits year over year. The company projects an operating margin of 13% – 14%, compared to 13.1% last year. Abercrombie & Fitch raised its FY24 net sales growth outlook to 12% to 13% (from around 10%) and revised the operating margin forecast to 14% – 15% from the prior view of around 14%. The company continues to expect capital expenditure of about $170 million.
Abercrombie shares dipped 17% to close at $138.31 on Wednesday.
These analysts made changes to their price targets on Abercrombie following earnings announcement.
- UBS analyst Mauricio Serna maintained Abercrombie & Fitch with a Neutral and lowered the price target from $193 to $165.
- Morgan Stanley analyst Alexandra Steiger maintained the stock with an Equal-Weight and lowered the price target from $155 to $147.
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