Abercrombie & Fitch beats top-line and bottom-line estimates; raises FY24 outlook

• Abercrombie & Fitch press release (NYSE:ANF): Q1 Non-GAAP EPS of $2.14 beats by $0.42.
• Revenue of $1.02B (+22.0% Y/Y) beats by $55.01M.
• Comparable sales up 21%.
• Cash and equivalents of $864 million. This compares to cash and equivalents of $901 million and $447 million as of February 3, 2024 and April 29, 2023, respectively.
• Net cash provided by operating activities of $95 million.

Outlook:

• For fiscal 2024, the company now expects:
  • Net sales up around 10% from $4.3 billion in fiscal 2023. This is an increase to the previous growth outlook in the range of 4% to 6%.
  • Operating margin to be around 14%. This range improves from the previous outlook of around 12%. It expects the year-over-year improvement to be driven by a higher gross profit rate and some operating expense leverage.
  • Effective tax rate to be in the mid-to-high 20s, with the rate being sensitive to the jurisdictional mix and level of income.
  • Capital expenditures of approximately $170 million.
• For the second quarter of fiscal 2024, the company expects:
  • Net sales growth to be up mid-teens compared to fiscal second quarter 2023 level of $935 million.
  • Operating margin to be in the range of 13% to 14% compared to an operating margin of 9.6% in Q2 2023.
  • Effective tax rate to be mid-20s, with the rate being sensitive to the jurisdictional mix and level of income.