Abercrombie & Fitch (Anf) Q4 2024 Profit

Abercrombie & FitchGrowth history begins to slow down.

Stock retailer’s stock on Wednesday fell 15% after issuing a company weak than expected by the guide In his current quarter and financial 2025, he said he expects his sale to grow more slowly than the Wall Rate expected.

According to LSEG, Abercrombie expects sales to increase from 3% to 5% in 2025, which is much lower than 6.8% growth. For its current quarter, the company suggests that the stock profit will be from $ 1.25 to $ 1.45, which has no $ 1.97 expectations.

The slowdown in the mark of the namesake Abercrombie causes problems. The segment leads to the company in previous quarters than the Hollister, its chain that serves teenagers.

A quarter of sales in Abercrombie grew by only 2%, and Hollister’s sales jumped by 16%. Comparative sales in Abercrombie increased by 5%and the Hollister Comps was 24%.

Abercrombie brand sales continued to slow down February and became negative within a month, CEO Fran Haravitz said by call with analysts.

“Last year, we had a little flawless transition in the spring, and this year it was a little more normalized.

When asked where the macroeconomic conditions or something else move, the slowdown, the leaders did not answer, and said that they see “green shoots for spring”.

In addition to the leadership and slowing of growth, Abekrombi narrowly won Wall -Story expectations in its financial fourth quarter. Here’s how the sellers performed compared to what Wall Rate was waiting, based on a LSEG analyst survey:

• Profit per share: 3.57 dollars Against $ 3.54 expected
• Income: 1.58 billion dollars against 1.57 billion dollars expected

The company’s net income was reported over the three -month period, which ended on February 1, amounted to $ 187 million, or $ 3.57 per share, compared to $ 158 million, or $ 2.97 per share a year earlier.

Sales rose to $ 1.58 billion, which is 9% compared to $ 1.45 billion a year earlier. Like other retailers, Abercrombie took advantage of an additional week of sale during the year. This negatively rolled comparisons to many companies, but the sales of Abercrombie jumped with even one less sold week.

In addition to sales and earnings, Abekrombi said he expects another key metric – operating profitability – will be lower than the Wall -Story in the current quarter. Abekrombi expects his operating profitability to be from 8%to 9%, which is significantly behind the 12.8%estimates, said Streetaccount.

In January, Abercrombus offered Investors view In his festive performance, when he released an early set of results and raised his forecast in the fourth quarter. However, its stock collapsed that day because the forecast showed that Abekromb was expecting that its growth would be moderate and believed that its operating stock would not increase for its previous forecast. Concerns around his operating margin are probably increasing after Abercrambis issued his financial guidance in the first quarter.

However, not all the recommendations of Abercrombus were disappointing. For his current quarter, he believes that sales will increase from 4%to 6%, according to expectations of 5.8%, according to LSEG. For the whole year, he believes that the profit will be from $ 10.40 to $ 11.40 per share, which is high and higher than $ 10.83 per share.

After about two years of explosive growth and sales growth, the Abercrombie business appears to be aligned, and markets can turn away from the biggest retailers in favor of names with more direct translation.

The company is still growing and working on the creation of its international market, but it is unclear whether the blockbuster’s numbers, which he posted after the turn at the CEO Goroditsa, will still see. It faces the rigid comparisons of the previous year, and some tinnage can start to disappear.

In addition, consumers have been noticeable since the beginning of the year, which will always put pressure on special retailers that sell discrete goods as clothing. Geopolitics, unreasonable weather and mass tragedies, such as forest fires in the Los -Andeles, weakened consumer demand, but buyers are also concerned about things as rising tariff prices. In February, consumer confidence decreased to the lowest levels since 2021.

The fact that Holist is now growing faster than Abercrombie, and given most sales means a turning point for the company and shows that a teenage -oriented brand can become a more important growth driver. It also put pressure on management to make more to stimulate the Abercrombie brand and make sure it remains stagnant.

The beginning of the year was a little worse than expected for a number of other companies, including Target and Elf beauty. Like the elf, Abekrombi could notice the influence of the proposed prohibition of the cicon, which at the beginning of the year reached out for the performance of the cosmetic company.

Both companies are largely calculated on Tiktok for marketing. In February, CEO Elf Tarang Amen said CNBC suspects the proposed ban influenced the sale of cosmetics Because people do not publish things like the video “Get ready with me” or clothes that can provide sales.

In the press release in January, Goriwitz signaled that the Abekromb will be more oriented to increase the profit than sales, because it seems “moves long-term shareholders”.

“After the expected two-digit growth of the upper and lower string, I am as sure as never in the power of our brands and the operating model when we move forward, supporting the excellent opportunities we created,” said Garages. “In 2025, we will seek to continue sustainable, profitable growth through the execution of our books to defeat and retain customers around the world. Our goal is to use our healthy margin structure and balance to increase revenue and profit from the rally faster than sales.”

This proposal came true on Wednesday when Abercrombie announced a new $ 1.3 billion ransom resolution and said he expects to spend $ 400 million for shares in 2025.