Abercombie & Fitch shares surge on Q1 profit beat

(Sharecast News) - Shares in Abercombie & Fitch surged after the opening bell on Wednesday after the American apparel group beat profit expectations with its first-quarter results, with sales rising despite weakness in some regions. The firm said profits for the three months to 2 May totalled $67.1m, down from €80.4m the year before, though adjusted earnings per share of $1.47 smashed the $1.28 expected by analysts.

Sales were up 1.5% year-on-year at a record $1.11bn, though comparable sales fell 1%, behind the consensus forecast.

"We delivered record first quarter net sales and our 14th consecutive quarter of growth, reflecting our teams' consistent execution for our customers amid a dynamic global environment," said chief executive Fran Horowitz.

"Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC. In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region."

The company held on to its full-year outlook for sales and operating margins, and reiterated confidence in its targets to deliver full-year net sales growth across brands.

The stock was 11.6% higher at $83.57 by 1515 BST.