ABERCROMBIE & Fitch brand ads on a large -scale digital advertising panel in the outernet building on November 4, 2024 in London, UK.
Mike Kemp In photos Gety pictures
shares Abercrombie & Fitch It rose on Wednesday, even after retail stores reduced profit expectations due to the customs tariff, whose work is expected to reach $ 50 million.
The company is now expecting the share profits for a full year between $ 9.50 and $ 10.50, a decrease from a previous range ranging between $ 10.40 and $ 11.40. Analysts expected $ 10.33 per share profits, according to Lseg.
ABERCROMBIE has also reduced its operating margin expectations, which is another scale closely monitored by investors. The operating margin is now expected to range between 12.5 % and 13.5 %, a decrease from a previous range between 14 % to 15 %.
The company’s guidelines include the estimated impact of the customs tariff currently in effect, including a 30 % tariff on imports from China and 10 % tax on goods from dozens of other countries. It excludes other definitions that stop temporarily.
However, ABERCROMBIE shares increased by 25 % in pre -market trading after the company released results in the first quarter that beat Wall Street’s expectations at the top and bottom and issued revenue guidelines that won the expectations. The stock decreased by approximately 49 % this year enters Wednesday.
Here’s how the clothing company performs in the first quarter compared to expectations, based on a survey of analysts by Lseg:
- Arrow’s profits: $ 1.59 for $ 1.39 expected
- profit: $ 1.10 billion for $ 1.07 billion expected
The net net income of the company was three months that ended on May 3, 80.4 million dollars, or $ 1.59 per share, compared to $ 114 million, or $ 2.14 per share, a year ago.
Sales rose to $ 1.10 billion, an increase of about 8 % from $ 1.02 billion in the previous year. In a press release, Abercrombie said sales amounted to a record height for the first quarter in the first quarter.
“This was higher than our expectations and was supported by widespread growth in our three regions,” CEO Fran Horwitz said in a statement. “Hollister Brands led 22 % growth, as it achieved its best sales in the first quarter of sales, while the net sales of Abercrombie decreased by 4 % against sales growth 31 % in 2024.”
Besides profit forecast, Abercrombie raised its sales instructions for the whole year and is now expected to increase revenues between 3 % and 6 %, an increase of a previous range ranging between 3 % and 5 %. This is largely before growth forecast 3.3 %, according to LSEG.
For its current quarter, Abercrombie expects sales to rise between 3 % and 5 %, which is in line with 4.7 % growth forecast at the end, according to LSEG. The company expects its operating margin to range between 12 % and 13 %, which is less than 14.1 %, according to Streetaccount. The share profits are expected to range between $ 2.10 and $ 2.30, less than expected $ 2.50.
Abercrombie guidance greatly reflects how the customs tariff will offer its profits, but its sales are also expected to be achieved because it is slowing down on a sign of the same name. The Abercrombie series, which bears its name, has fueled its historical return over the past few years, but sales have decreased by 4 % in the brand in the first quarter, after 31 % growth in the period last year.
Meanwhile, sales similar to Abercrombie have decreased by 10 %.
Slower sales can be simply normalized after the supercrombie growth, but it can also be a sign that the company is losing its share in the market.
Hollister brand was much better than a sign of the same name. During the quarter, sales in Hollleceter increased 22 %, while similar sales grew by 23 %. It is expected that the series focusing on adolescents will push the growth of Abrachrombe forward.
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