Abercrombie & Fitch Co. (ANF) shares gained 5.56% in after-hours on Monday, January 10, 2022, and closed the daily trading at $34.15. However, in the regular trading sessions of Monday, ANF’s stock lost 2.53%. ANF shares have risen 40.41% over the last 12 months, and they have moved down 7.52% in the past week. Over the past three months, the stock has lost 13.04%, while over the past six months, it has declined 25.72%.
Let’s have a brief look at its recent news and developments.
ANF latest development
On January 10, 2022, Abercrombie & Fitch Co. provided an update on its outlook for the 2021 fiscal year and the fourth quarter of fiscal 2021.
FY 2021 financial outlook
For FY 2021, ANF is expecting,
- Net sales up in the range of 19% to 20% compared to 2020 net sales of $3.125 billion and up 2% to 3% compared to 2019 net sales of $3.623 billion.
- Operating margin of 9% to 10%, compared with adjusted non-GAAP operating margins of 1.7% and 2.3% in fiscal 2020.
- Capital expenditures of $90 million to $95 million compared to the previous outlook of $100 million.
Q4 2021 financial outlook
- Net sales up in the range of 4% to 6% compared to 2020 net sales of $1.122 billion and flat to down 2% compared to 2019 net sales of $1.185 billion.
- Gross profit rate to be approximately 58.2%, flat to 2019 levels and in line with the previous outlook.
- Operating expenses in the line with previous provide outlook which was to be up low-to-mid single digits from 2019 adjusted non-GAAP operating expense of $565 million.
ANF latest financial results
On November 23, 2021, Abercrombie & Fitch Co. (ANF) reported results for the third quarter that ended October 30, 2021.
Q3 2021 financial highlights
- ANF reported net sales of $9.5 million for Q3 2021 compared to $819.6 million in Q3 2020.
- The total cost of sales was $328.9 million in Q3 2021 compared to $295.2 million in Q3 2020.
- In Q3 2021, the gross profit margin was 63.7% compared to 64% in Q3 2020.
- Marketing, general and administrative expenses were $146.3 million in Q3 2021 compared to $121.0 million in Q3 2020.
- It earned a net income of $49.08 million in Q3 2021 compared to $44.03 million in Q3 2020.
- As of October 30, 2021, the company had cash and cash equivalents of $0.9 billion compared to cash and equivalents of $1.1 billion on January 30, 2021.
The improved financial outlook of Q4 and FY 2021 was the reason behind its turnaround in the after-hours on Monday and it can continue to surge on Tuesday as well.