Abercrombie & Fitch stock soars on Q1 earnings beat

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Abercrombie & Fitch stock soars on Q1 earnings beat

Shares of Abercrombie & Fitch Co. (ANF) are soaring on Wednesday, propelled by the company’s first quarter earnings beat on both the top and bottom lines. The apparel retailer reported revenue of $1.02 billion, surpassing analysts’ estimates of $958.71 million. Abercrombie & Fitch’s adjusted earnings per share (EPS) reached $2.14, above the expected $1.69.

Yahoo Finance’s Executive Editor Brian Sozzi dissects the key drivers of the quarterly report.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Consumers still flocking to Abercrombie and Fitch name them shares.

Rallying on Wednesday after beating profit expectations and posting strong sales in the first quarter.

The company raising its full year sales outlook as demand across apparel and accessories continues to grow for a deeper dive into the results.

Yahoo Finance executive editor Brian Sazi here with the breakdown look, I I said name them but like I am one of them.

I made my my way in one of the stores like last week.

Yeah, this quarter, I just wanna put this in context.

Um This is not going to be the norm from these retail earnings that are coming up.

We saw it when Walmart Report, we saw it from T report a couple week ago, apparel is just soft and we saw it within Macy’s results.

So for Abercrombie again to put up a I would say mind blowing quarter is uh a very much an Abercrombie driven story.

So what is this company doing?

Right?

It’s just getting its styles right?

Uh It’s keeping in its inventory under wraps.

This is a company that grew sales over 20% in the most recent quarter and its inventory was flat.

What is that telling you?

It’s that it’s just planning its business very well and it’s not overstocking items.

It’s putting new merchandise on the floor and the stuff is selling out.

Well, one area of the business that really caught me by surprise guys on the conference call moments ago was the wedding.

Business is the business.

They recently launched Abercrombie and Fitch.

And it’s, uh, the Fran Hoitz CEO will talk to a little bit later on, uh, this afternoon saying it’s one of the hottest businesses they have right now, can’t keep the stuff in stock.

And it’s not only that they’re coming in and buying wedding dresses, uh, from Abercrombie and Fitch or various wedding styles.

These are new customers in many cases to the Abercrombie brand and that is having that is sending customers to other areas of the store.

You know what?

That’s so interesting because it makes sense when you take a step back and think about it because it was really the millennial shopper who knew Abercrombie so well, decades ago.

Right.

And so now many of those people are in the age of they’re getting married, they’re having weddings.

So why not buy at Abercrombie?

I didn’t even know.

I just pulled it up.

I pulled it up on my, on my computer right now.

I had no idea that they even had this business until you just said it.

But it makes sense because it also re the remaining committed to their loyal customers and they’re playing into that base that has worked well for them.

You see the film, you see the fitness?

Well, look, I saw, I saw the fit and I was upset because you were teasing this to us before.

And yeah, I didn’t see this coming at all.

They don’t have tuxes there though.

I was just there.

No tuxedos.

They’re not gonna compete with the men’s warehouse.

But also interesting to uh Abercrombie noting on the conference call that they are now going to, I think now that their US business is solid.

Abercrombie’s working Hollister businesses finally start to turn, they’re shifting their or shifting their sites to uh Europe, notably uh Germany and the UK.

In fact, Fran Horowitz, uh saying she was just in the UK for and had their first annual board meeting there uh in, in quite some time.

So look for the company now to expand overseas a little more aggressively and thoughtfully and then also open up a good number of stores here in the US in the back half of the year.

We should clarify.

This is like wedding.

I’m still hung up on this wedding guest attire is what?

But they have stuff that you could wear for your wedding.

It walking down the aisle, rehearsal dinner, there’s a lot of stuff you could wear that.

Yeah, get you geared up for your back.

I’m here to bring you this like hashtag breaking news.

This one you can wear down the aisle.

It’s not me but it is here.

But if you wear head to toe Abercrombie and Fitch, why not just live that wedding lifestyle and go out and buy one of these dresses?

Are you?

So you do, would you buy, would you get someone from there?

Of course, why not?

I mean, it’s not bad.

Yeah, it’s not bad.

And it’s also a very affordable price point, especially when you compare it to some of the other.

I’m gonna put this to, uh, Ceo Fran Horace because I walk, walk by my latest, uh, my recent, my Abercrombie Fitch store, uh, Roosevelt Mall and I didn’t see any of this stuff.

So I gotta ask her where, where is this?

And why is not my store one?

Yes.

Yeah.

Maybe we should be buying more of these dresses.

I have no weddings to go to.

Nor am I getting married.

Not yet.

Nor do you need a dress any time any of that stuff on the wedding site?

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