Abercrombie & Fitch Q4 Earnings Misses Estimates; Stock Down 9%

Abercrombie & Fitch

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(RTTNews) - Specialty retailer Abercrombie & Fitch Co. (ANF) reported on Wednesday that net profit for the fourth quarter increased from last year, driven by improved operating margins and 9 percent revenue growth. However, adjusted earnings per share missed analysts' estimates, while net sales topped it. The company also provided outlook for the first quarter and for the full-year 2025.

In pre-market activity on the NYSE, Abercrombie & Fitch shares are slipping $8.86 or 9.22 percent to trade at $87.25.

For the fourth quarter, Abercrombie & Fitch reported that net income attributable to the company grew to $187.23 million or $3.57 per share from $158.45 million or $2.97 per share in the prior-year quarter.

On average, analysts polled expected the company to report earnings of $3.60 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 9 percent to $1.58 billion from $1.45 billion in the same quarter last year. Net sales were also up 10 percent on a constant currency basis. Total company comparable sales growth was 14 percent. Analysts expected revenues of $1.57 billion for the quarter.

Net sales at Abercrombie brand grew 2 percent to $772.67 million from last year, with comparable sales growth of 24 percent. Hollister net sales improved 16 percent to $812.25 million from a year ago, with comparable sales growth of 5 percent.

Operating margin as a percent of sales improved 90 basis points to 16.2 percent from 15.3 percent last year.

Looking ahead to the first quarter, the company expects earnings in a range of $1.25 to $1.45 per share on net sales growth of 4 to 6 percent.

Analysts expect the company to report earnings of $2.01 per share on revenue growth of 5.66 percent to $1.08 billion for the quarter.

For fiscal 2025, the company now projects earnings in a range of $10.40 to $11.40 per share on net sales growth of 3 to 5 percent.

The Street is looking for earnings of $11.30 per share on revenue growth of 7.08 percent to $5.28 billion for the year.

The company's Board of Directors also authorized a new $1.3 billion stock repurchase program, which replaces the company's prior share repurchase program authorized by the Board in 2021. It expects $400 million in share repurchases for 2025.

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