Latest news with #FranHorowitz
Yahoo
6 hours ago
- Business
- Yahoo
Why Abercrombie & Fitch Stock Is Soaring This Week
Abercrombie reported another strong quarter despite tariff issues. The company was forced to lower guidance due to the levies, especially those imposed on China. The company believes the impact won't be as severe as some had feared. 10 stocks we like better than Abercrombie & Fitch › Shares of Abercrombie & Fitch (NYSE: ANF) are trading higher this week. The company's stock jumped 9.7% as of 2:15 p.m. ET. The move up comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 were up 1.4% and 1.1%, respectively. The clothing retailer released its quarterly numbers on Wednesday, beating Wall Street targets at a time when other retailers are struggling. Abercrombie posted a strong quarter and set relatively optimistic guidance, even in the face of uncertainty around Trump's tariffs. The company delivered earnings per share (EPS) of $1.59 on sales of $1.10 billion for the quarter, beating consensus expectations of $1.39 on $1.07 billion in sales. Investors were pleased with the performance, willing to look past the company's downward adjustments to its forecast of earnings and margins for the full year. The company was projecting EPS between $10.40 and $11.40, but now expects between $9.50 and $10.50. Operating margins guidance was also cut, from 14%-15% to 12.5%-13.5%. While downgrades are rarely well received, they were less than many anticipated, given Trump's introduction of sweeping tariffs in April. CEO Fran Horowitz was pleased, telling investors the quarter beat "expectations and was supported by broad-based growth across our three regions," attributing the success primarily to the Hollister brand, which "led the performance with growth of 22%, achieving its best-ever first-quarter net sales." She also noted that sales growth for Abercrombie's core brand had slowed slightly, but is still in the double digits. Abercrombie has reinvented itself, no longer the controversial brand of the early 2000s. It continues to show strong, resilient growth at a time when many clothing retailers are struggling. I think it is a solid pick. Before you buy stock in Abercrombie & Fitch, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abercrombie & Fitch wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Abercrombie & Fitch Stock Is Soaring This Week was originally published by The Motley Fool Sign in to access your portfolio
Fibre2Fashion
7 hours ago
- Business
- Fibre2Fashion
US' Abercrombie raises FY25 sales outlook slightly after 8% Q1 surge
American lifestyle retailer Abercrombie & Fitch Co has reported a net sale of $1.1 billion in the first quarter (Q1) of fiscal 2025 (FY25), an increase of 8 per cent year-over-year (YoY), with comparable sales increasing 4 per cent YoY. The operating income of the company reached $102 million, though the margin narrowed to 9.3 per cent from 12.7 per cent in the same period a year earlier. Earnings per diluted share stood at $1.59, down from $2.14 in Q1 FY24. Abercrombie & Fitch Co has reported net sales of $1.1 billion in Q1 FY25, up 8 per cent YoY, led by 22 per cent growth in Hollister brand. The operating margin declined to 9.3 per cent, with EPS at $1.59. EMEA sales rose 12 per cent. FY25 outlook sees lowered EPS and margin guidance, steady capex of $200 million, and Q2 sales growth forecast at 3â€'5 per cent. The company saw broad-based regional growth, with Europe, the Middle East, and Africa (EMEA) sales rising 12 per cent, Americas up 7 per cent, and Asia-Pacific (APAC) improving 5 per cent, Abercrombie said in a press release. Brand-wise, Hollister led the performance with a 22 per cent YoY increase in net sales, while Abercrombie brands declined 4 per cent, following a strong 31 per cent surge in the same quarter last fiscal. 'We delivered record first quarter net sales with 8 per cent growth to last year. This was above our expectations and was supported by broad-based growth across our three regions. Hollister brands led the performance with growth of 22 per cent, achieving its best ever first quarter net sales, while Abercrombie brands net sales were down 4 per cent against 31 per cent sales growth in 2024,' said Fran Horowitz, chief executive officer (CEO) at Abercrombie & Fitch Co. 'We exceeded our expectations on the bottom line as well, with operating margin of 9.3 per cent and earnings per share of $1.59. We also returned excess cash to shareholders through share repurchases totalling $200 million in the quarter, marking our fifth consecutive quarter of share repurchases,' added Horowitz. 'As we navigate the current environment, we have the team and proven capabilities in place to read, react and adapt, while continuing to deliver for customers globally. Importantly, with a strong foundation, we remain on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success.' Abercrombie has revised its fiscal 2025 outlook and now it anticipates net sales growth in the range of 3 to 6 per cent, slightly higher than its previous 3 to 5 per cent forecast. However, it has cut its projected operating margin to 12.5–13.5 per cent from 14–15 per cent and lowered its net income per diluted share estimate to between $9.5 and $10.5, down from $10.4 to $11.4. Capital expenditures (capex) are expected to remain at approximately $200 million, in line with its previous guidance. It also plans for 60 store openings, 20 closures, and 40 remodels or right-sizings, added the release. For the second quarter (Q2) FY25, Abercrombie projects net sales growth of 3 to 5 per cent, an operating margin of 12 to 13 per cent, and earnings per diluted share of $2.1 to $2.3. Fibre2Fashion News Desk (SG)
Yahoo
10 hours ago
- Business
- Yahoo
Why Abercrombie & Fitch Co. (ANF) Soared On Wednesday
We recently published a list of . In this article, we are going to take a look at where Abercrombie & Fitch Co. (NYSE:ANF) stands against other best-performing stocks. Abercrombie grew its share prices by 14.67 percent on Wednesday to finish at $88.47 apiece as investor sentiment was boosted by higher net sales in the first quarter of the year despite a challenging market environment. In a statement, Abercrombie & Fitch Co. (NYSE:ANF) said net sales grew by 7.5 percent to $1.097 billion from the $1.020 billion registered in the same period last year, with the Hollister brand achieving a 22-percent growth during the period. Net sales from Abercrombie, on the other hand, dipped by 4 percent year-on-year. A close-up of a customer trying on a piece of apparel in the retailer's spacious dressing room, emphasizing the company's focus on personal care and experience. Attributable net income, however, dropped by 29 percent to $80.4 million from the $113.8 million recorded in the same period a year earlier. Despite the decline, Abercrombie & Fitch Co. (NYSE:ANF) CEO Fran Horowitz said the net income figure exceeded its earlier expectations. For the full year, Abercrombie & Fitch Co. (NYSE:ANF) now expects net sales to grow between 3 and 6 percent, slightly higher than the high-end range of 5 percent as previously expected. The company also aims to grow its net sales between 3 and 5 percent for the second quarter alone. Overall, ANF ranks 3rd on our list of best-performing stocks. While we acknowledge the potential of ANF, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ANF and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Why Abercrombie & Fitch Stock Is Soaring Today
Abercrombie reported another strong quarter despite supply chain headwinds. The company lowered full-year guidance, but the impact of trade tariffs looks manageable for the company. 10 stocks we like better than Abercrombie & Fitch › Shares of Abercrombie & Fitch (NYSE: ANF) are flying higher on Wednesday. The company's stock had gained 15% as of 2:36 p.m. ET. The jump came as the S&P 500 and the Nasdaq Composite were mostly flat. The clothing retailer reported its first-quarter numbers before the market opened on Wednesday, beating Wall Street targets. Abercrombie released its Q1 earnings, revealing a strong quarter and guidance even in the face of tariff uncertainty. The company delivered earnings per share (EPS) of $1.59 on sales of $1.10 billion for the quarter, beating consensus expectations of $1.39 on $1.07 billion in sales. The top- and bottom-line beat sent the company's stock soaring. Investors appeared willing to look past the company's downward adjustments to its forecast of earnings and margins for the full year. The company was projecting EPS between $10.40 and $11.40, but now expects between $9.50 and $10.50. Operating margins guidance was also cut, from 14%-15% to 12.5%-13.5%. The company cited President Donald Trump's tariffs, especially those on goods imported from Chinese, as the main driver in lowering its guidance. Still, the results were impressive. As CEO Fran Horowitz explained, the results were "above our expectations and were supported by broad-based growth across our three regions." She attributed the success to the Hollister brand, saying that it "led the performance with growth of 22%, achieving its best ever first quarter net sales" and adding that "Abercrombie brands net sales were down 4% against 31% sales growth in 2024." Abercrombie, which has reimagined itself for a new generation, continues to show exceptional growth at a time when many clothing retailers are struggling. I think it is a solid pick. Before you buy stock in Abercrombie & Fitch, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abercrombie & Fitch wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Abercrombie & Fitch Stock Is Soaring Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Abercrombie & Fitch Co (ANF) Q1 2025 Earnings Call Highlights: Record Sales and Strategic ...
Net Sales: $1.1 billion, up 8% year-over-year. Operating Margin: 9.3%. Earnings Per Share (EPS): $1.59. Share Repurchases: $200 million, totaling 5% of shares outstanding. Americas Sales Growth: 7%. EMEA Sales Growth: 12%. APAC Sales Growth: 5%. Hollister Net Sales Growth: 22%. Abercrombie Brands Net Sales Decline: 4%. Inventory Increase: 21% at cost. Cash and Cash Equivalents: $511 million. Marketable Securities: $97 million. Full Year Net Sales Growth Outlook: 3% to 6%. Full Year Operating Margin Outlook: 12.5% to 13.5%. Full Year EPS Outlook: $9.50 to $10.50. Capital Expenditures: Approximately $200 million. New Store Openings: Around 100 new experiences, including 60 new stores. Warning! GuruFocus has detected 3 Warning Sign with REX. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Abercrombie & Fitch Co (NYSE:ANF) reported record net sales of $1.1 billion for the first quarter, an 8% increase from the previous year, surpassing their expected growth range of 4% to 6%. The company achieved an operating margin of 9.3% and earnings per share of $1.59, both above the ranges provided in March. Hollister brand delivered record first-quarter results with 22% net sales growth, marking its 8th consecutive quarter of growth. Net sales growth was observed across all regions, with the Americas growing by 7%, EMEA by 12%, and APAC by 5%. Abercrombie & Fitch Co (NYSE:ANF) returned $200 million to shareholders through share repurchases, totaling 5% of shares outstanding at the beginning of the year. Abercrombie brands experienced a 4% net sales decline, with comparable sales down 10%, primarily due to lower AUR as they cleared seasonal carryover inventory. The company faced a reduction in full-year operating margin outlook due to an estimated 100 basis point impact from tariffs. Gross margin was negatively impacted by freight and carryover pressures, contributing to a 440 basis point decline in Q1. Abercrombie & Fitch Co (NYSE:ANF) anticipates a $50 million cost impact from tariffs for 2025, affecting their full-year operating margin outlook. The company is experiencing pressure on AUR, particularly in the Abercrombie brand, due to carryover inventory and competitive market conditions. Q: Can you provide more color on the outlook for Abercrombie's men's and women's lines and initiatives at Hollister? Also, what's new with the reduced store closures and remodels? A: Fran Horowitz, CEO: Abercrombie faced pressure due to carryover inventory, but our flexible model allows us to chase successful products like swimwear. We expect an inflection in Abercrombie's performance in the back half. Hollister had a strong quarter, driven by culturally relevant initiatives like the gradshop. On real estate, we're net store openers, planning 100 new experiences, with reduced closures due to successful landlord negotiations. Q: How do you view the full-year sales outlook, especially with the revised high-end guidance despite tariff impacts? A: Robert Ball, CFO: We're confident in our 3% to 6% sales growth guidance, rolling through Q1's beat. Tariffs impact margins, but we're leveraging our strong balance sheet to invest in marketing and technology, which supports our confidence in achieving the higher end of our sales range. Q: Can you discuss the progression of traffic and inventory levels at Abercrombie and Hollister? A: Fran Horowitz, CEO: Traffic was strong for both brands. Abercrombie worked through carryover inventory, and we're comfortable with current levels. Hollister also saw strong traffic, both in stores and online. Q: What are the expectations for Abercrombie's return to growth later in the year, and what will drive this? A: Fran Horowitz, CEO: We expect an inflection in the back half, driven by categories showing positive reactions. Our model allows us to stay flexible and agile, responding to customer demand and trends. Q: How are you managing gross margin pressures, and what are the expectations for operating margins in the future? A: Robert Ball, CFO: Q1 gross margin was impacted by freight and carryover inventory. We expect sequential improvement in Q2 as these pressures ease. Our focus remains on long-term sales and profit growth, with a strong operating margin guide of 12.5% to 13.5%. Q: Can you elaborate on the promotional strategy for Abercrombie and Hollister, especially in light of carryover inventory? A: Robert Ball, CFO: We'll align promotions with inventory levels and demand. For Hollister, we aim to maintain gains in AUR while being opportunistic with promotions to drive growth. Q: What are your expectations for growth in Europe and Asia for the rest of the year? A: Robert Ball, CFO: We expect growth across all regions, with strong performance in the UK and Germany. Our diversified portfolio and channel strategy support continued global growth. Q: How are you addressing competitive pressures and ensuring Abercrombie's continued success? A: Fran Horowitz, CEO: We focus on our successful playbook, aligning product, voice, and experience with customer needs. Our agile model allows us to stay ahead of competitors by quickly responding to trends and customer feedback. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
