Abercrombie & Fitch Shares Soared On Thursday, Here’s Why

Abercrombie & Fitch

Abercrombie & Fitch Co. (NYSE: ANF)

Investors of Abercrombie & Fitch had an exciting trading session on Thursday after shares of the company gained more than 20 percent.

Wall Street gained confidence in the teen apparel retailer after announcing stronger-than-anticipated quarterly top and bottom lines that flew past analyst estimates, thanks to high momentum in the U.S. and solid growth of its Hollister label.

$ANF stock was up $3.52, or 20.58% to $20.61 at 3:30 p.m. in New York. The shares had lost 3.28% this year through Wednesday, changing hands at $17.12 per share.

The Ohio-based company posted net income of $23.9 million, or $0.35 per share for the quarter, compared to $10.0 million, or $0.15 per share, in the same period last year. Excluding non-recurring items, earnings during the quarter were $0.33 per share.

Sales totaled to $861 million, up from $859 million year over year. Analysts were expecting the company to report adjusted earnings of $0.20 per share on sales of $854 million, according to figures compiled by FactSet.

Comparable-store sale climbed 3%, surpassing expectations for a rise of 1.6%. However, the company warned that net sales would decline in the mid single digits for the current quarter, but it’s still expecting identical-store sales to be in the low single digits. Its sales forecast for the full year is for a rise of 2% to 4% and identical-store sales to rise by the same amount. Abercrombie & Fitch is also expecting to shut down 40 stores before the year comes to a close – down from its earlier estimate of up to 60.

In the company’s earnings press release, Chief Executive Fran Horowitz said, “We are pleased with our third quarter performance, our fifth consecutive quarter of positive comparable sales, with growth across both of our brands. We delivered 3% comparable sales growth on top of 4% last year, with continued gross profit rate stabilization. Our strong U.S omnichannel business, and 16% global digital sales growth, confirm that our playbooks are working.”

Abercrombie & Fitch Co. Profile

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The Company operates in two segments, Hollister and Abercrombie. It offers apparel, intimates, personal care products, and accessories for men, women, and kids under the Hollister, Abercrombie & Fitch, Abercrombie kids, and Gilly Hicks brand names. As of August 30, 2018, it operated approximately 850 stores in North America, Europe, Asia, and the Middle East.

The company sells products through its stores and direct-to-consumer operations; various third-party wholesale, franchise, and licensing arrangements; and e-commerce sites, including abercrombie.com and hollisterco.com. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio. – Yahoo Finance