Abercrombie & Fitch (NYSE:ANF) started Wednesday’s trading strongly, up 14% in early deals, as first-quarter net sales hit $1 billion thanks to a 22% jump in year-over-year sales.
It was described as the highest first-quarter net sales in its history, meanwhile, operating margin also improved.
Abercrombie brands saw 31% sales growth, while the Hollister brand was up 12%.
Earnings per share, meanwhile, amounted to $2.16 per share which comfortably exceeded Wall Street analyst forecasts pitched at $1.76.
At $1.02 billion, revenue similarly eclipsed analyst expectations that anticipated $967 million.
Chief executive Fran Horowitz described the financial results as “outstanding” and told investors that the performance reflected the power of the group’s brands and ‘strong execution of a global playbook’.
“We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations,” Horowitz said in a statement.
Abercrombie today added that it had upgraded its outlook for the full year, in terms of sales and margin, envisaging around 10% net sales growth and a 14% improvement in margin – compared to 4-6% and 12% respectively.
“We remain on track to achieve our 2024 goal of demonstrating sustainable, profitable growth after a defining year for the company in fiscal 2023,” Horowitz added.
“Our brands are delivering high-quality, on-trend assortments for new and retained customers across regions and brands. Importantly, we continue to make strategic investments across stores, digital and technology to further strengthen the company in pursuit of our long-term ambition.”
In New York, Abercrombie stock was up $26.33 or 17.2% after half an hour of the start of Wednesday’s trading session.