Abercrombie & Fitch (NYSE:ANF) reported fourth-quarter results that slightly exceeded analyst expectations, yet its shares tumbled more than 12% intra-day today as its first-quarter guidance came in weaker than anticipated.
The apparel retailer posted adjusted earnings per share (EPS) of $3.57, just ahead of the consensus estimate of $3.56. Revenue rose 9% year-over-year to $1.58 billion, surpassing analyst projections of $1.56 billion. Comparable sales saw a robust 14% increase during the quarter.
For the full fiscal year 2024, Abercrombie delivered strong growth, with net sales rising 16% to $4.95 billion, supported by a 17% jump in comparable sales. The company also saw a notable improvement in profitability, with its operating margin expanding to 15.0%, up 370 basis points from the previous year.
Despite these positive results, the company’s first-quarter fiscal 2025 outlook disappointed investors. Abercrombie forecasts Q1 EPS between $1.25 and $1.45, significantly below the consensus estimate of $2.01. The company expects net sales growth between 4% and 6% for the quarter.
For the full fiscal year 2025, Abercrombie anticipates net sales growth of 3% to 5% and EPS in the range of $10.40 to $11.40, with the midpoint slightly trailing analyst expectations of $11.30.