Shares of Abercrombie & Fitch Co (NYSE: ANF) gained as much as 20% this morning after the American lifestyle retailer reported a surprise profit for its third financial quarter.
The stock is also up on guidance.
ANF expects its Q4 sales to slide between 2.0% and 4.0% on a year-over-year basis. But that still translates to slightly better than $1.09 billion that experts had forecast. In the earnings press release, CEO Fran Horowitz said:
We have strategically adjusted our inventory receipts for holiday and early-2023, and unlike last year, we have the inventory on hand to fulfil holiday demand in the peak Black Friday to Christmas period.
Abercrombie & Fitch ended the quarter with inventories up 36% versus last year – about 92% of which, it added, was “current, long-lived, or future set”.
Nonetheless, it’s noteworthy for those interested in buying Abercrombie & Fitch stock that Wall Street has a consensus “hold” rating on it at writing.
Also on Tuesday, Abercrombie & Fitch named restaurant veteran Nigel Travis its new Chairman of the Board. He will replace Terry Burman as he retires on January 28th.
Travis has previously served as an executive at the likes of Dunkin Brands and Papa John’s.
ANF had $617 million in total liquidity at the end of its third quarter. CEO Horowitz added:
We have reduced controllable spend where appropriate. At the same time, we’re leveraging our strong financial position to advance the long-term, strategic investments necessary to achieve our 2025 Always Forward Plan.
Abercrombie & Fitch stock is still down 45% versus its year-to-date high.
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