Abercrombie & Fitch reported a better-than-expected 4th quarter profit on Wednesday, thanks to stronger-than-expected sales growth over the period.

The American brand, very popular with teenagers and young adults, posted an operating profit of 223 million euros for the three months to the end of January, compared with 87 million a year earlier.

Earnings per share came to 2.97 dollars, compared with analysts' expectations of 2.83 dollars.

Quarterly sales rose by 21% to 1.5 billion euros, exceeding both consensus and the targets set by the Ohio-based group.

"After several years of transforming our brands, teams and operating model, fiscal 2023 has been a defining year for our company," said CEO Fran Horowitz.

The company, which also owns the Hollister brand, confirmed its long-term goal of reaching annual sales of five billion dollars.

For the immediate future, Abercrombie says it expects sales for its new fiscal year to be up 4% to 6% on the $4.3 billion generated last year.

In pre-market trading, the stock lost more than 2%, but its gains since the beginning of the year are close to 60%.

Copyright (c) 2024 CercleFinance.com. All rights reserved.