Abercrombie & Fitch upgrades outlook after record sales quarter

Abercrombie & Fitch (NYSE:ANF) reported a record quarter of sales, with revenue up 22% to exceed $1 billion for the three months.

It sent the stock soaring, up 19%  to trade at $181.57, as both revenue and earnings per share metrics comfortably beat Wall Street forecasts.

The fashion company said sales of its Abercrombie & Fitch brand improved 31% year-over-year, while the Hollister brand saw a 12% rise.

Chief executive Fran Horowitz described the financial results as “outstanding” and told investors that the performance reflected the power of the group’s brands and ‘strong execution of a global playbook’.

Abercrombie upgraded its outlook for the full year, in terms of sales and margin, envisaging around 10% net sales growth and a 14% improvement in margin – compared to 4-6% and 12% respectively.

“We remain on track to achieve our 2024 goal of demonstrating sustainable, profitable growth after a defining year for the company in fiscal 2023,” Horowitz added.