Abercrombie & Fitch Swings To Profit In Q2, Beats Estimates; Raises FY23 View; Stock Up In Premarket

(RTTNews) - Apparel retailer Abercrombie & Fitch Co. (ANF) on Wednesday reported earnings for the second quarter, compared to a loss in the prior year quarter. The earnings beat market estimates.

Further, the company issued its third-quarter outlook, and raised its fiscal 2023 earnings and revenue guidance.

The company reported quarterly net earnings of $56.89 million or $1.10 per share, compared with a loss of $16.83 million or $0.33 loss per share last year.

Excluding items, net income was $1.10 per share, compared with a loss of $0.30 per share last year.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue increased 16 percent to $935 million from $805 million of last year, driven by Abercrombie brands as well as Hollister brands and showed a 16 percent growth on constant currency basis. The Street estimate for revenue is $842.38 million.

Looking ahead to the next quarter, the company expects operating margin to be in the range of 8 percent to 10 percent compared to an adjusted operating margin of 2.4 percent driven by a higher gross profit rate.

Revenue is expected to grow in double digits compared to $880 million in the third quarter of last year. The market consensus for revenue is $902.84 million.

Looking forward to the full year, the company now expects operating margin to be in the range of 8 percent to 9 percent. The previous guidance was 5 percent to 6 percent.

Revenue is now expected to grow around 10 percent from $3.7 billion of previous year. The previous outlook was a growth of 2 percent to 4 percent. The Analyst's estimate for revenue is $3.84 billion.

Also, the company is expecting to add approximately $45 million to total net revenue for the fourth quarter and full year results from the 53rd week.

In pre-market activity, shares of ANF are trading at $47.53, up 15.45% on the New York Stock Exchange.