Abercrombie & Fitch Co. (ANF) provided an update on its fourth quarter and Fiscal year outlook, on January 10. Following the announcement, the stock rose in the after-hours by 5.56% on Monday.
In the previous session, ANF stock traded in the red with a loss of 2.53% at its close of $32.35. The announcement led the stock to reach $34.15 in the after-hours with a gain of $1.80.
Abercrombie & Fitch Co., the retailer of apparel, personal care products, and accessories, has a market capitalization of $1.88 billion. Currently, the company has 56.49 million shares outstanding in the market.
ANF’s Fiscal 2021 Outlook Update
According to Monday’s announcement, the company expects the net sales of 2021 to increase by 19% to 20% against 2020 ($3.125 billion). Further, an increase of 2% to 3% is expected over the net sales of 2019 ($3.623 billion).
Moreover, ANF expects an operating margin in line with the previous outlook of 9% to 10% in 2021. This compares to an adjusted non-GAAP operating margin of 1.7% in 2020 and 2.3% in 2019.
Added to this, the expected capital expenditures in 2021 are between $90 million and $95 million. Comparatively, the previous outlook was $100 million.
ANF’s Q4 Outlook Update
As per the updated outlook for the fourth quarter of 2021, ANF expects:
- Net sales increase by 4% to 6% against $1.122 billion of Q4 2020 and decrease by 2% against $1.185 billion of Q4 2019. This compares to an increase of 3% to 5% over 2019 as of the previous outlook.
- Approx. flat Gross profit to 58.2% of 2019, in-line.
- Low-to-mid single digits operating expenses from $565 million adjusted non-GAAP operating expense of Q4 2019 (in-line).
- Low to mid-20s effective tax rate against previous low 20s outlook.
- $125 million share repurchases are inclusive of a quarter-to-date repurchase of $115 million.
In addition, the company also announced its upcoming presentation at the ICR XChange Conference. The conference will take place from January 10 to 13, 2022 and ANF will be presenting on January 11 at 11 am EST.
2021 Best Workplaces in RetailTM
On November 04, the company announced being named one of the 2021 Best Workplaces in RetailTM. ANF was named so by Fortune magazine and workplace culture’s global authority, Great Place to Work®. Furthermore, it is the first time that the company has been named on this esteemed list.
