Abercrombie&Fitch shares fall as Q1 guidance disappoints

Investing.com -- Abercrombie&Fitch Co. reported fourth quarter earnings that narrowly beat analyst expectations, but shares fell over 5% premarket as first quarter guidance came in below estimates.

The apparel retailer posted adjusted earnings per share of $3.57, edging past the consensus estimate of $3.56. Revenue rose 9% YoY to $1.58 billion, surpassing analyst projections of $1.56 billion. Comparable sales increased 14% in the quarter.

For the full fiscal year 2024, Abercrombie reported net sales growth of 16% to $4.95 billion, driven by a 17% increase in comparable sales. The company's operating margin expanded to 15.0%, up 370 basis points from the previous year.

However, Abercrombie's outlook for the first quarter of fiscal 2025 fell short of expectations. The company forecasts Q1 earnings per share between $1.25 and $1.45, well below the $2.01 consensus estimate. Abercrombie projects Q1 net sales growth of 4% to 6%.

For the full fiscal year 2025, the company expects net sales growth of 3% to 5% and earnings per share in the range of $10.40 to $11.40. The midpoint of this EPS guidance is slightly below the analyst consensus of $11.30.

"We enter fiscal 2025 with highly relevant brands, an agile playbook, and a motivated global team driven by a culture of innovation and growth," said CEO Fran Horowitz in a statement.

Abercrombie also announced a new $1.3 billion share repurchase authorization and plans to buy back $400 million in shares during fiscal 2025.