Abercrombie & Fitch (ANF) reported better-than-expected earnings and revenue for the fiscal fourth quarter, with comparable sales and gross margin also topping expectations.
ANF shares fell around 3% at the market open.
The company announced its Q4 earnings per share (EPS) at $2.97, surpassing the analysts' prediction of $2.83. Revenue came in at $1.5 billion, exceeding the consensus estimate of $1.43 billion.
Abercrombie recorded a 16% increase in comparable sales during the quarter, slightly above the 15.7% estimate. Furthermore, the gross margin was reported at 62.9%, also above the forecasted 60.2%.
Looking ahead to fiscal 2025, Abercrombie & Fitch projects a net sales growth of 4% to 6%.
“I am incredibly proud of how we performed throughout fiscal 2023, finishing with fourth quarter year-over-year net sales growth of 21%, which exceeded our January business update expectations,” said Fran Horowitz, CEO of Abercrombie & Fitch.
“By staying close to our customers, tightly controlling inventories and continuing to operate with financial discipline, our team delivered year-over-year fourth quarter operating margin expansion of 800 basis points, reaching 15.3%,” he added.