Abercrombie Soars on Strong Q4 Earnings and Upbeat 2023 Outlook
• Abercrombie & Fitch reported strong Q4 results with sales, earnings, and key divisions beating estimates. The company's stock has soared 390% over the past year.
• CEO Fran Horowitz aims to prove the sustainability of Abercrombie's performance amid high investor expectations. She sees a path to $5 billion in annual sales.
• Net sales grew 21% to $1.5 billion. Comparable sales rose 16%. Gross margin expanded to 62.9% from 55.7% last year.
• Abercrombie ended 2022 with $901 million in cash, up 74% annually. Inventories dropped 7%.
• First quarter and full-year 2023 outlooks call for continued net sales growth and higher operating margins.