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Analysts told investors that the company’s 2Q print lends further credibility to the Abercrombie & Fitch turnaround.
“2Q beat/FY raise magnitude & Hollister inflection surprised to the upside, sending shares +23% since the print,” explained analysts. “ANF’s across-the-board 2Q EPS beat outpaced already-elevated expectations into the print, with $1.10 EPS coming in 6x+ the Street’s 16c. Notably, A&F topline momentum continued for the 7th consecutive quarter, while Hollister comps turned positive for the first time since 2Q19 ex-Covid.”
This week, ANF reported earnings of $1.10 per share, $0.94 better than the analyst estimate of $0.16. Meanwhile, revenue for the quarter came in at $935 million versus the consensus estimate of $839.06 million.
Analysts concluded that given the company’s 3Q FY2023 guidance screens conservative, its turnaround proving “increasingly legitimate,” and various scenario analyses putting guidance within reach, the firm sees “potential incremental upside.”
ANF stock surged +23% following the earnings beat on Wednesday. After a 0.8% decline Thursday, it is up over 1% ahead of Friday’s session.
