Abercrombie & Fitch Reports Strong Demand in Fourth-Quarter Beat

Apparel retailer Abercrombie & Fitch reported fiscal-fourth-quarter earnings and revenue ahead of analyst expectations.
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Shares of Abercrombie & Fitch  (ANF) - Get Report are up after the apparel retailer reported fiscal-fourth-quarter results that exceeded analyst expectations

In the quarter ended Feb. 1 the New Albany, Ohio, company earned $1.29 a share against $1.42 in the year-earlier quarter. The latest adjusted earnings were $1.31 a share. Shares outstanding fell 5.7% to 64.2 million.

Analysts surveyed by FactSet were expecting the company to report adjusted earnings of $1.23 a share.

Revenue rose 2.5% to $1.18 billion from $1.16 billion a year earlier. FactSet's survey was looking for revenue of $1.17 billion.

The company reported a 1% increase in comparable-store sales, in line with analysts’ expectations, according to FactSet.

Abercrombie & Fitch Q4 Earnings graphic

The company cited record Black Friday sales results and positive holiday-quarter sales growth for the third consecutive year. Its Abercrombie brand outperformed its Hollister brand and the U.S. outperformed international stores.

“Recent results reflect the significant progress we have made against our long-term initiatives, with 2019 marking the second full year of our growing-while-transforming phase,” Chief Executive Fran Horowitz said in a statement.

“Over the past two years we have delivered a combined 157 new store experiences, reduced gross square footage by 6%, accelerated the rationalization of our flagship fleet and introduced local customer and product-facing teams in the [Europe-Mideast-Africa and Asia-Pacific] regions. 

"We have laid the groundwork and remain confident in our long-term vision.”

For the year, the company saw sales rise 1% to $3.62 billion, though its gross-profit margin fell 0.8 percentage point to 59.4% as it took $47 million of charges for store exits.

Abercrombie shares at last check were up 3.2%. They closed the regular session Tuesday off 1.7% at $12.69.