- Abercrombie & Fitch Co ANF reported Revenue growth of 3% in the first quarter of FY23 year-over-year to $835.99 million, beating the analyst consensus estimate of $814.53 million.
- Adjusted earnings per share were up at $0.39 consensus from $(0.05).
- U.S. sales were up 9% year over year, while international sales were down 12%. Abercrombie brand sales rose 14%, while Hollister sales fell 7%.
- Gross profit margin increased 570 basis points to 61%. Operating income for the quarter was $34 million compared to a loss of $(10) million in the prior year, at a margin of 4.1%.
- The Company had $447 million in cash and cash equivalents as of April 29, 2023. Operating cash flow was $(1) million on usage.
- Inventories fell 20% to $448 million at the end of the first quarter.
- “Looking ahead, we remain cautiously optimistic on consumer demand and our ability to respond to a dynamic macro environment, further supported by our strong balance sheet,” said CEO Fran Horowitz.
- Outlook: ANF expects Q2 net sales growth of 4% – 6% and an operating margin of 2% – 3%.
- For FY23, ANF has raised its forecast for net sales growth 1% – 3% to 2% – 4%. It also raised its FY23 operating margin guidance to 5% to 6% from 4% to 5%.
- Price promotion: ANF shares are trading 18% higher at $27.17 premarket at last check on Wednesday.
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