Shares of the lifestyle retailer Abercrombie & Fitch Co. (NYSE: ANF) gained in pre-market trading at the time of publishing on Wednesday after the retailer announced adjusted earnings of $0.39 per diluted share in the first quarter as compared to $0.27 in the same period last year beating analysts’ estimates by $0.37.
The company posted net sales of $836 million, up by 3% year-over-year, exceeding consensus estimates of $814.54 million.
Fran Horowitz, Abercrombie & Fitch’s CEO commented, “Looking ahead, we remain cautiously optimistic on consumer demand and our ability to react to a dynamic macro environment, further supported by our strong balance sheet. We are managing inventory tightly and each brand is in a position to chase demand.”
The company issued an upbeat outlook and now expects net sales to grow in the range of 2% to 4% in FY23 from its prior forecast of sales growth between 1% and 3%. In FY23, the operating margin is forecasted to be in the range of 5% to 6% from the prior outlook of 4% to 5%.
In Q2, ANF has projected net sales to rise from 4% to 6% while operating margin is projected to be in the range of 2 to 3%.
Overall, analysts are sidelined about ANF stock with a Hold consensus rating based on two Buys, four Holds, and one Sell.
