HomeIndustriesAbercrombie & Fitch Shares Surge After Company Raises Sales Outlook

Abercrombie & Fitch Shares Surge After Company Raises Sales Outlook

Abercrombie & Fitch Inc reported an unexpected quarterly profit on Wednesday, raising its annual sales forecast as a result. The company’s shares surged by 18% following the announcement.

The company reported a first quarter gross profit margin of 61%; a 570 basis point rise from a year ago. Its inventory decreased by 20% to $448 million during the first quarter compared to a year ago.

Previously expecting a growth range of 1% to 3%, Abercrombie now expects its 2023 net sales to rise between 2% and 4%. This forecast contrasts those of other retailers such as Kohl’s, who have maintained their previous annual sales forecasts after releasing their earnings for the first quarter.

For the quarter that ended April 29, the company’s net sales rose by about 3% to $836 million. This outpaces an estimated $814.5 million that analysts expected on average. The flagship Abercrombie brand saw a 14% rise in sales over the first quarter while the Hollister brand incurred a 7% decline.

Home Sales Plummeted in August According to Pending Data

Pending home sales for August were down 7.1% from the previous month, data from the National Association of Realtors revealed. This far outpaces the...

Stocks Fall After the Release of GDP Data

U.S. stocks declined on Thursday as investors digested the latest round of GDP data. Estimates on Thursday showed that the U.S. economy's GDP for...

Hyundai and Kia Recall Over 3 Million Vehicles Due to Fire Risk

Hyundai and Kia are in the process of recalling over 3.4 million vehicles in the United States due to a fire risk. Both automakers...