Abercrombie & Fitch Company reportedly announced the financial results of the fourth quarter this Tuesday morning. The firm beat the estimates in terms of the earnings as well as the revenue. The stronger-than-predicted results led to the 17.7 percent upsurge in the prices of their shares very shortly after this announcement was made.
As for the fourth quarter, the firm announced its earnings to be around 1.35 Billion US Dollars on the net sales of around 1.15 Billion US Dollars. The financial analysts predicted earnings of around 1.15 US Dollars for every share while the sales to be somewhere around 1.13 Billion US Dollars.
It was reported by the firm that they had an optimistic sales rise of as much as 3 percent as compared to the prior year for this particular quarter as well as for the full year, with 9 percent and 3 percent growth compared to the prior year, respectively.
Although the firm outdid all of its revenue estimates, it was still 3 percent lower than the same quarter, last year. The positive side of which is that the firm was able to reduce its expenses for the very quarter.
The expenses related to the storing and the distribution of the firm slightly fell to 434.5 from 437 Million US Dollars in the last year. The Marketing related, administrative and general expenses fell by around 10 Million US Dollars.
The Hollister brand of the firm witnessed a much higher than expected revenue. All thanks to the rise in their comparable sales. For that particular quarter, the sales in comparison to the prior year rose by 6%.
The CEO of the firm, Fran Horowitz said: “We ended 2018 on a strong note, recording our sixth consecutive quarter and second consecutive full year of positive comparable sales while exceeding USD 1 Billion in annual digital sales. I am proud of our team and all we have accomplished this year. Most importantly, while delivering on the top-line, we drove gross profit rate improvement and operating expense leverage resulting in 100 basis points of adjusted EBIT margin expansion and a 77% improvement in adjusted net income for the full year.”