NEW ALBANY, Ohio - Abercrombie & Fitch Co. (NYSE: ANF) has revised its financial outlook upward for the fourth quarter and full fiscal year of 2024. The specialty retailer now anticipates net sales growth for the fourth quarter to be in the range of 7% to 8%, an increase from the previous estimate of 5% to 7%. For the full year, the company expects net sales growth to be around 15%, up from the previously forecasted range of 14% to 15%.
The company's CEO, Fran Horowitz, attributed the improved outlook to a record quarter-to-date net sales performance, driven by strong comparable sales across regions and brands during the holiday selling period. This performance aligns with the company's remarkable 66% stock return over the past year. Horowitz expressed confidence in the company's ability to deliver sustainable, profitable growth and highlighted the successful execution of strategic initiatives. InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value, with analyst price targets ranging from $149 to $220.
Despite the adjustments in sales growth, Abercrombie & Fitch maintained its operating margin outlook for both the fourth quarter and the full year, expecting around 16% and 15%, respectively. The effective tax rate for both periods is expected to remain unchanged, with the fourth quarter in the high-20s and the full year in the mid-20s.
This update suggests that the company is on track to outperform the financial targets set out in its Always Forward Plan 2025, which was introduced in June of 2022. Abercrombie & Fitch credits its strong foundation, including healthy brands, regional playbooks, and a robust omnichannel base, for its positive performance.
The company's executives will discuss the updated outlook and the company's strategic direction at the 2025 ICR Conference. The audio of their fireside chat will be available for public access.
This press release contains forward-looking statements and is based on current assumptions and projections about Abercrombie & Fitch's business and future events. The company acknowledges that these statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and projections.
In other recent news, Abercrombie & Fitch has made significant strides in its recent financial performance. The company reported record third-quarter sales of $1.2 billion, marking a 14% increase year-over-year. Both Abercrombie and Hollister brands contributed to this growth, indicating a balanced performance across the company's portfolio.
JPMorgan has raised Abercrombie & Fitch's stock target and maintained an Overweight rating, citing the company's successful operating strategy and strong momentum. The company's management has also highlighted the brand's broadened product offerings and effective marketing strategies.
Raymond (NS:RYMD) James initiated coverage on Abercrombie & Fitch, assigning an Outperform rating, and predicting higher earnings per share and revenue growth than consensus estimates. This outlook is supported by the company's successful revamp in recent years and expectations of continued robust growth.
Simultaneously, Bernstein reported a positive start to Q4 for Abercrombie & Fitch, highlighting a recovery in spending among higher-income U.S. consumers and strong performance in the EMEA and APAC regions.
These are recent developments that have taken place within the company, demonstrating its strong financial health and promising outlook according to various analysts.
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