Abercrombie & Fitch Co. - Class A
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −11.93%.
Did ANF Beat Earnings? Q4 2024 Results
Abercrombie & Fitch posted a mixed but broadly solid fiscal Q4 2024, with revenue clearing expectations even as earnings fell just short. The retailer reported net sales of $1.58 billion, up 9.1% year-over-year and edging past the $1.57 billion consensus, while GAAP diluted EPS of $3.57 missed the $3.60 analyst estimate by 0.81%, representing 20% growth from $2.97 in the prior-year period. The standout driver was Hollister, which delivered 16% net sales growth and 24% comparable sales gains in the quarter, more than compensating for a softer performance from the Abercrombie brands. Operating margin expanded 90 basis points to 16.2%, though higher freight costs pressured gross margins. The results capped a full-year performance that saw net sales reach $4.95 billion, up 16%, with GAAP EPS of $10.69 growing 72%. Looking ahead, management guided fiscal 2025 net sales growth of 3% to 5% and operating margin of 14% to 15%, with the outlook already incorporating estimated tariff impacts on imports from China, Mexico, and Canada, alongside a new $1.3 billion share repurchase authorization signaling confidence in the balance sheet.
- 14% comparable sales growth in Q4 driven by strong Hollister performance at 24% comparable sales
- Double-digit comparable sales growth across both brands and all regions for the full year
- Expense leverage from sales growth partially offset by higher freight costs
- Lower effective tax rate and reduced diluted share count from buybacks boosted EPS growth
- Improvement in cost of sales as a percent of net sales for the full year (35.8% vs 37.1%)
“In fiscal 2024, we once again delivered on our commitments to our global customers and shareholders. We entered the fiscal year with the goal of achieving sustainable, profitable growth on top of a defining fiscal 2023, and our collective effort and focus produced results well beyond our initial expectations. We grew net sales 16% to nearly $5 billion while expanding operating margin to 15%, with operating income and EPS growth of 53% and 72%, respectively.”
Abercrombie & Fitch CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025 full year, the company expects net sales growth of 3% to 5%, operating margin of 14% to 15%, effective tax rate around 26%, net income per diluted share of $10.40 to $11.40, share repurchases of $400 million, diluted weighted average shares of around 51 million, and capital expenditures of approximately $200 million, with approximately 40 net store openings (60 openings, 20 closures) and 40 remodels/right-sizes. For Q1 2025, the company expects net sales growth of 4% to 6%, operating margin of 8% to 9%, effective tax rate around 25%, EPS of $1.25 to $1.45, and share repurchases of $100 million. The operating margin outlook includes estimated impact from tariffs announced in February 2025 on goods imported from China, Mexico, and Canada into the United States, but does not include impacts from other potential future policy changes or additional tariffs.
ANF YoY Financials
ANF Revenue by Segment
ANF Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.