- Abercrombie & Fitch shares jumped 31% on Wednesday after posting a surprising first-quarter profit.
- Results were boosted by lower transportation costs and higher prices.
- The retailer raised its full-year net profit forecast. sales and operating margin.
Abercrombie & Fitch (ANF) soared 31% on Wednesday after the mall retailer posted a surprise profit and raised its full-year forecast.
Abercrombie reported first-quarter earnings per share (EPS) of $0.39. Analysts expected a loss of $0.05. Revenue rose 2.9% to $836 million, also ahead of forecast. Same-store sales increased 3%, compared to estimates of a 1% decline.
Retailer highlighted drop significant transportation costs and a price increase, or average retail unit (AUR), for the good results.
CEO Fran Horowitz noted that the AUR has jumped by double digits since the COVID-19 pandemic, calling it “a big win for us.”
She added that the products of Abercrombie are “significantly resonating with our target customer base”, setting multiple sales records across genders, categories and geographies.
The company anticipates now 2023 net sales growth in the 2%-4% range, up from its previous outlook of 1%-3% growth. He sees an operating margin of 5% to 6%, down from the previous range of 4% to 5%.