Shares of Abercrombie & Fitch Co. jumped more than 8% in pre-market trading on Thursday after the retailer raised its full-year profit and sales outlook, citing strong demand for its casual apparel..
The company now expects net sales in the range of $3.55 billion to $3.65 billion for fiscal 2023, up from its previous guidance of $3.45 billion to $3.55 billion. Comparable sales are projected to increase by 5% to 6%, compared to the prior forecast of 2% to 3%..
Abercrombie also raised its adjusted earnings per share outlook to a range of $3.60 to $3.75, up from $3.45 to $3.60 previously..
The revised guidance reflects the company’s strong performance in the third quarter, which ended October 29, 2022. Net sales increased by 1% to $890.9 million, exceeding analysts’ estimates of $881.1 million. Comparable sales rose by 3%, driven by strength in the women’s and kids’ categories..
Gross profit margin expanded by 110 basis points to 60.8%, primarily due to a decrease in promotional activity. Adjusted operating income grew by 18% to $185.7 million..
