Amir Hamja/Bloomberg
reported an unexpected profit in its fiscal first quarter, sending its stock higher in early trading.
Abercrombie (ticker: ANF) said it earned $41.8 million, or 64 cents a share, compared with a loss of $3.90 in the year-ago period. On an adjusted basis, which strips out nonrecurring items, earnings were 67 cents a share, while analysts had predicted the company would lose 38 cents a share. Revenue rose 61% to $781.4 million, also above the $687.3 million consensus estimate.
Abercrombie stock was up 7.8% to $41 in early trading. The shares have surged 87% year to date, and have risen nearly 192% in the past 12 months.
Sales were also 6% higher than the same pre-pandemic period in 2019, while digital sales jumped 45%, increasing each month of the quarter. Sales at the Hollister brand soared 62%, while its flagship Abercrombie & Fitch banner notched a 60% increase.
It was the fourth straight quarter that the company’s top and bottom lines have surprised on the upside. The news comes amid a fairly strong earnings season for retail, from big box to department stores, as mass vaccination allows more consumers to return to in-person shopping, even as online sales continue apace.
That said, while the company appears to have bounced back from the pandemic, its lessons are continuing to be felt. Abercrombie said that it closed its flagship location in Singapore during the first quarter, as part of its strategy to shift away from large, tourist-dependent stores. The company now has six flagship locations, down from 15 at the start of fiscal 2020.
Write to Teresa Rivas at teresa.rivas@barrons.com
