Abercrombie & Fitch beats top-line and bottom-line estimates; initiates Q1 and FY24 outlook

Abercrombie & Fitch Co. press release (NYSE:ANF): Q4 Non-GAAP EPS of $2.97 beats by $0.12.
Revenue of $1.5B (+21.0% Y/Y) beats by $70M.
Comparable sales up 16%.
Cash and equivalents of $901 million as compared to $518 million last year.
Inventories of $469 million, a decrease of approximately 7% over last year.
Net cash provided by operating activities of $653 million.
For fiscal 2024, the company expects:
- Net sales growth in the range of 4% to 6% vs. 8.98% Y/Y from $4.3 billion in fiscal 2023, which includes the adverse impact of approximately $50 million from the 53rd reporting week in fiscal 2023.
- Operating margin to be around 12%, compared to an adjusted operating margin of 11.4% in fiscal 2023. We expect the year-over-year improvement to be driven by a higher gross profit rate.
- 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.
Fiscal 2024 First Quarter Outlook

For the first quarter of fiscal 2024, the company expects:
- Net sales to be up low double-digits to fiscal first quarter 2023 level of $836 million vs. growth of 15.15% Y/Y.
- Operating margin to be in the range of 8% to 10% compared to adjusted operating margin of 4.6% in Q1 2023.
- Effective tax rate to be around 10%, which is lower than the company’s statutory federal income tax rate.

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