Shares of Abercrombie & Fitch (ANF) are under modest selling pressure into Wednesday’s open as solid fourth quarter results, including record revenue, were overshadowed by the company’s expectations for the current quarter that fell short of analysts’ expectations.
For the thirteenth consecutive quarter, Abercrombie & Fitch (ANF) generated record net sales of $1.67B—up 5% from a year ago and in line with estimates—on a 1% gain in comparable sales. The increase in sales was achieved through gains across all regions and in both the Abercrombie & Fitch and Hollister banners.
The company’s profitability improved as well, with adjusted net income per diluted share increasing 3.1% to $3.68, beating estimates by $0.11. Operating income of $236M was down 8.5%, contributing to a 210 basis point compression in operating margin to 14.1%.
Looking ahead to the current quarter, the retailer expects to earn a profit between $1.20 and $1.30 per share on a 1% to 3% increase in sales, translating to a range of $1.11B to $1.13B. These expectations fall short of the consensus estimates of $1.45 per share on $1.16B in revenue.
For FY26, guidance was within expectations, as net income is expected to be within the range of $10.20 to $11.00 per share on a 3% to 5% increase in sales, translating to a range of $5.43B and $5.53B. Both straddle estimates of $10.40 per share on $5.50B in sales.