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Abercrombie & Fitch (NYSE:ANF) stock surged nearly 16% in pre-open trading Tuesday after beating the top and bottom line for the third quarter and posting its highest third-quarter net sales since 2014.
The retailer posted a revenue decline of 3% to $880 million, but that easily beat the consensus of $829.6M. Sales were flat on a constant currency basis. Non-GAAP EPS was a profit of $0.01, versus an expected loss of $0.13 per share. Results were driven by Abercrombie brands.
CEO Fran Horowitz said they are “cautiously optimistic as the holiday season kicks into high gear.”
“While the environment remains dynamic, we are focused on what we can control,” Horowitz commented. “We have strategically adjusted our inventory receipts for holiday and early-2023, and unlike last year, we have the inventory on hand to fulfill holiday demand in the peak Black Friday to Christmas period.”
For the fourth quarter, the company sees net sales down 2%-4% from last year’s $1.2B. This suggests sales of $1.152B – $1.176B, versus the consensus of $1.09B.
