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- Abercrombie & Fitch Co ANF reported a third-quarter FY22 sales decline of 3% year-on-year to $880 million, beating the consensus of $831.13 million.
- Adjusted EPS of $0.01 beat the consensus of $(0.15).
- U.S. sales increased 3% Y/Y while International sales declined 18%.
- The gross profit margin compressed 450 basis points to 59.2%. The operating income for the quarter was $17.5 million versus $72.73 million a year ago, with the margin shrinking from 8% to 2%.
- The company held $257 million in cash and equivalents as of October 29, 2022. Cash used in operating activities year-to-date totaled $(301) million.
- Inventories increased 36% to $742 million at the end of Q3.
- "We are cautiously optimistic as the holiday season kicks into high gear. While the environment remains dynamic, we are focused on what we can control," said CEO Fran Horowitz.
- Abercrombie brand sales rose 10%, while Hollister sales fell 12%.
- The company said its results were driven by Abercrombie brands, where it delivered the highest Q3 net sales since 2014 and the tenth consecutive quarter of average unit retail growth.
- Leadership Transition: ANF said Terry Burman will step down as Chairperson of the Board at the conclusion of the company's fiscal year ending on January 28, 2023.
- Nigel Travis, current Director and Chair of the Nominating and Board Governance Committee of the Board, will assume the role of Chairperson effective January 28, 2023.
- Outlook: Abercrombie expects FY22 sales to be down 2% - 3% (previous outlook down mid-single-digits).
- It sees an FY22 operating margin of 2% - 3%, up from the previous outlook of 1% - 3%.
- For Q4, ANF sees sales to be down 2% - 4%.
- Also Read: Why Abercrombie & Fitch Shares Are Soaring Tuesday
- Price Action: ANF shares are trading higher by 16.70% at $21.74 on the last check Tuesday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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