Abercrombie & Fitch Co. (NYSE:ANF) reported revenue rose 7% year-over-year in Q2 to $1.2 billion. Comparable sales were up 3% during the quarter.
The Hollister brand saw a 19% jump in sales to offset the 5% decline for the Abercrombie brand. Sales in the Americas segment rose 8%, and sales were 12% higher in the APAC segment, while the EMEA segment saw a 1% decline.
Operating income was 17.1% of sales during the quarter on a reported basis vs. 15.5% a year ago. On an adjusted non-GAAP basis, operating margin was 13.9% vs. 15.5% last year. Net income rose to $143.4 million vs. $135.4 million a year ago. Non-GAAP EPS of $2.32 matched the consensus expectation but was down from the $2.53 mark for the same quarter a year ago.
CEO Fran Horowitz noted that the Hollister brand resonated with teens during the quarter. “On the bottom line, we exceeded our second quarter profitability expectations, while also returning $50 million to shareholders through our sixth consecutive quarter of share repurchases,” updated Horowitz.
Looking ahead, Abercrombie & Fitch (NYSE:ANF) expects revenue to rise 5% to 7% for the full year. Full-year EPS of $10.00 to $10.50 (midpoint $10.25) is anticipated, compared to a prior outlook for $9.50 to $10.50 and $10.21 consensus. The retailer said it is investing to capitalize on the significant, long-term opportunities for its global brands.
Shares of Abercrombie & Fitch (ANF) edged 0.4% higher in premarket action. The mall stock is down more than 35% on a year-to-date basis. Short interest stands at 14.2% of the total float.