Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
DAVID MARCUS: Trump’s base trusts him to play...
Trump weighs striking Iranian nuclear facilities: ‘I may...
GOP says Dems admit ‘guilt’ in Biden health...
Poll position: Where Trump stands in the eyes...
Ilhan Omar claims no one has ‘attacked Americans,’...
‘Squad’ members, GOP lawmaker join forces to reject...
Vance defends Gabbard as ‘critical part’ of Trump...
Trump downplays signs of MAGA unrest over possible...
‘Instincts for restraint’: Senate divided over who gets...
Top Trump ally predicts Senate will blow past...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Business

Abercrombie expects a strong holiday quarter as growth run continues

by admin November 27, 2024
November 27, 2024
Abercrombie expects a strong holiday quarter as growth run continues

Abercrombie & Fitch isn’t giving up its crown anytime soon. 

The apparel company issued strong holiday guidance on Tuesday after posting its sixth straight quarter of double-digit sales growth and another quarter of results that topped expectations. The recent arrest of the company’s former CEO, Mike Jeffries, on charges of sex trafficking did not appear to affect results.

Here’s how Abercrombie did in its fiscal third quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

The company’s reported net income for the three-month period that ended Nov. 2 was $131.98 million, or $2.50 per share, compared with $96.2 million, or $1.83 per share, a year earlier. 

Sales rose to $1.21 billion, up around 14% from $1.06 billion a year earlier. 

For the all-important holiday shopping quarter, Abercrombie is expecting sales growth of 5% to 7%, ahead of the 4.8% growth that analysts had expected, according to LSEG. For the full year, the company is expecting sales to rise between 14% and 15%, higher than the 12% to 13% range it previously anticipated. That new outlook is higher than the 12.1% growth analysts had expected, according to LSEG. 

Despite the better-than-expected guidance, Abercrombie shares dropped about 3% in premarket trading.

In a news release, CEO Fran Horowitz struck a positive note, leaving out the concerns she’d mentioned in the previous quarter about the “increasingly uncertain environment.” 

“With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model. Each of our regions grew double-digits in the quarter, with the Americas growing 14%, EMEA growing 15% and APAC growing 32%,” said Horowitz.

The Abercrombie and Hollister brands posted comparable sales growth of 11% and 21%, respectively. Horowitz noted the strong performances lapped growth of 26% for Abercrombie and 7% for Hollister last year.

Under Horowitz’s direction, Abercrombie has become one of the retail industry’s biggest winners. As it laps the strong performance it posted last year, it’s continuing to build on those numbers.

To keep gaining momentum, Horowitz is looking to international markets for growth. Abercrombie has also gone into new categories, such as its wedding collection and recent partnership with the NFL. It’s also focused on developing its Hollister chain, which caters to Gen Z shoppers, and ensuring the brand is differentiated from Abercrombie, which caters to millennials. 

During the quarter, sales at Hollister were up 14%, accounting for nearly half of all revenue. 

As retailers gear up for Black Friday and the duration of the holiday shopping season, it appears as if some of the dim sentiment clouding the back half of the year has evaporated after President-elect Donald Trump’s victory. 

For example, Abercrombie and Dick’s Sporting Goods — which both reported earnings on Tuesday — struck cautious tones when reporting earnings over the summer, but that sentiment was replaced with bullishness now that the election is over. 

Consumer sentiment has improved since Trump’s election and analysts are hopeful that certainty in the election results — regardless of who won — will be a boon for spending.

This post appeared first on NBC NEWS

previous post
Trump begins endorsing replacements to replenish GOP majority in House as Cabinet picks shrink lead
next post
U.S. charges former Wamco executive Kenneth Leech with fraud

You may also like

Dow tumbles more than 600 points after weak...

August 6, 2024

‘Make Bitcoin Great Again’: Trump and GOP’s presence...

July 30, 2024

‘Trump trade’ returns for second week as bitcoin,...

November 13, 2024

Walmart pulls back on DEI efforts, removes some...

November 27, 2024

Stellantis to offer broad buyouts to U.S. salaried...

August 1, 2024

AI-powered sports media company raises $13 million, led...

February 13, 2025

Paramount ends DEI policies, cites Trump executive order

February 28, 2025

Panera Brands CEO steps down; CFO to fill...

January 9, 2025

Tesla denies report that the EV maker is...

May 2, 2025

Procter & Gamble to cut 7,000 jobs as...

June 9, 2025

Recent Posts

  • DAVID MARCUS: Trump’s base trusts him to play strong hand in Iran
  • Trump weighs striking Iranian nuclear facilities: ‘I may do it, I may not do it’
  • GOP says Dems admit ‘guilt’ in Biden health cover-up by boycotting Senate hearing on ‘constitutional scandal’
  • Poll position: Where Trump stands in the eyes of Americans five months into his second presidency
  • Ilhan Omar claims no one has ‘attacked Americans,’ but Iran’s deadly history tells different story

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (792)
    • Investing (2,350)
    • Politics (2,910)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.