Sales performance and raised forecasts indicate a strong comeback, resonating particularly with millennials embracing early 2000s fashion trends. The brand now anticipates a 12-14% increase in 2024 net sales, outshining previous estimates of around 10%. Q3’s outstanding 16% growth in comparable sales and an EPS of $1.83 (surpassing the $1.15 estimate) underscore Abercrombie’s resurgence.
Despite the stellar year with a 216% stock surge, shares dipped 6.8% in response, suggesting a cautious investor sentiment given the high expectations. Notably, Abercrombie’s 30% YoY increase in net sales for the Abercrombie brand and an 11% rise for Hollister showcase the brand’s solid performance.
As Abercrombie & Fitch navigates the crucial holiday season, CEO Fran Horowitz remains confident in sustaining customer-centric strategies and driving profitable growth throughout fiscal 2023.