Abercrombie & Fitch (ANF) reported fiscal first-quarter earnings early Wednesday that easily beat views. Abercrombie & Fitch stock rose before the open after hitting a fresh all-time high Tuesday. Rival American Eagle Outfitters (AEO) is due after the close
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The trendy youth apparel retailers are reporting as investors closely watch the impact of lingering inflation on consumers’ shopping habits. Last week, Urban Outfitters (URBN) issued strong earnings and a solid outlook for the current quarter.
Led by Abercrombie, the retail stocks went on a strong run in the past year on the back of resilient growth despite macroeconomic pressures.
Abercrombie & Fitch Earnings
Estimates: Analysts expected Abercrombie & Fitch earnings to vault 352% to $1.76, according to FactSet. Revenue was seen growing 16%, year over year, to $967.4 million. Same-store sales was forecast to climb 10.2%.
Results: Abercrombie earned $2.14 a share, soaring 449% vs. a year earlier. Revenue swelled 22% to $1.02 billion, with growth accelerating for a fifth straight quarter. Same-store sales up 21%, with Abercrombie & Fitch comps up 29%.
Outlook: For the full fiscal year ended January 2025, Abercrombie now sees revenue up 10% vs. a prior target of 4%-6%. Analysts projected a 7% gain before the Q1 results, FactSet shows.
Abercrombie is finding favor again with middle-age shoppers nostalgic for their youth, retail market watchers say. It has also made efficiency gains.
American Eagle Outfitters Earnings
Estimates: Analysts forecast American Eagle Outfitters earnings to jump 67% to 28 cents per share, according to FactSet. Revenue is seen growing 7%, year over year, to $1.151 billion. Same-store sales should rise 5.5% vs. a decline in the year-ago quarter.
Results: Check back Wednesday evening.
Outlook: For the full year, American Eagle has guided a revenue gain of 2% to 4%. Analysts forecast 3%, FactSet shows. American Eagle’s fiscal year ends in January.
Abercrombie Stock, American Eagle Stock
Shares of Abercrombie rose 4% before the open on the stock market today. ANF stock rose 1.5% to 152.39 on Tuesday, hitting a record high.
Abercrombie stock is extended from a 140.28 buy point, meaning shares are not in a proper buy range. They are up more than 381% from a prior breakout last June.
The relative strength line for Abercrombie & Fitch stock made a new high on Tuesday. A rising RS line, the blue line in the chart shown, shows a stock’s outperformance vs. the S&P 500 index.
American Eagle stock popped 3.2% Tuesday, still slightly below the 50-day moving average. Shares show a 26.44 buy point, though the RS line is near the consolidation bottom. Investors could use a decisive move above the 50-day line, or perhaps the 25.15 level, as an early entry.
Gap (GPS) reports late Thursday. Shares have fallen below the 50-day line after their big run-up since last October, sliding 3.1% on Tuesday. The company in March crushed estimates for the holiday quarter. The Old Navy brand also returned to growth.
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