Abercrombie & Fitch raises Q4 net sales growth outlook 7%-8% from 5%-7%

Consensus $1.56B. Increases full year net sales growth outlook to around 15% from previous range of 14-15%. Affirms prior fourth quarter operating margin outlook of around 16% and full year outlook of around 15%. Fran Horowitz, CEO said: “Through fiscal December, we delivered record quarter-to-date net sales, exceeding the expectations we provided in November. Total net sales growth was supported by comparable sales across regions and brands through the holiday selling period. As they have throughout 2024, our team remained on offense, and customers responded positively to our compelling product assortments and engaging marketing. As we approach the end of our fiscal year, we proudly reflect on 2024 as another year where we delivered on our promises to customers, shareholders, and one another as a team. We expect to complete the year with net sales growth around 15%, as well as a strong operating margin around 15%. Thank you to our global associates who have worked so hard to deliver sustainable, profitable growth in 2024. We have already accomplished so much together, but I am even more excited about our future. Following an expected two years of double-digit top and bottom-line growth, I am as confident as ever in the power of our brands and operating model as we move forward, supported by the outstanding capabilities we’ve built. In 2025, we will look to continue sustainable, profitable growth through the execution of our playbooks to win and retain customers around the world. Our goal is to leverage our healthy margin structure and balance sheet to grow operating income dollars and earnings per share at rates faster than sales to drive long-term shareholder value.” With the updated 2024 outlook, the company foresees significant outperformance of the Always Forward Plan 2025 financial targets provided in June of 2022. The company has built a strong, global foundation, and it expects to deliver sustainable, profitable growth off of the 2024 levels.