What's Going On With Abercrombie & Fitch Shares After Q4 Earnings?
Portfolio Pulse from Nabaparna Bhattacharya
Abercrombie & Fitch Company (NYSE:ANF) reported Q4 earnings with adjusted EPS of $2.97, surpassing the consensus of $2.83, and sales of $1.453 billion, exceeding expectations of $1.430 billion. The company saw a 21% net sales growth, led by a 35% increase in Abercrombie brands and a 16% rise in comparable sales. Gross profit rate improved to 62.9%, and the company ended the quarter with $901 million in cash. Despite these positive results, ANF shares dropped 4.64% to $133.46. The company forecasts FY24 revenue of $4.47 billion to $4.56 billion and expects low double-digit revenue growth in Q1.
March 06, 2024 | 3:15 pm
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Abercrombie & Fitch reported strong Q4 earnings and sales, with a notable increase in net sales and gross profit rate. Despite positive results, shares fell 4.64% to $133.46.
The drop in ANF shares despite surpassing earnings and sales expectations could be attributed to market expectations being even higher than the reported figures or possibly investors taking profits following the announcement. The significant growth in sales and profitability indicates strong operational performance, but the stock price reaction suggests a disconnect between the company's performance and investor sentiment in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100