Due mainly to performance at the company's iconic Abercrombie brand, Abercrombie & Fitch Co. announced quarterly sales and profit above Wall Street's expectations. The stock experienced its largest intraday gain in two years. As reported by the company, Abercrombie & Fitch Co.'s third quarter's net sales came to US$880.1 million.
Sales at the company's budget brand Hollister decreased by 12%, while those at the higher-end Abercrombie brand increased by 10%. After initially predicting a mid-single-digit decline, Abercrombie expects net sales to decline by two to three percent in 2022.
The shares increased by 21% in New York trade to $22.58, the highest level since November 2020. By November 21, 2022, the stock had lost 47% of its value for the year, compared to the S&P 500 Index's 17% decline.
The New Albany, Ohio-based business also announced on November 22, 2022, that Terry Burman, who has served as chairman since February 2018, will resign on January 28. Nigel Travis, a board member, will take on the role. Although American Eagle Outfitters Inc., a Pittsburgh-based firm, also announced results that beat expectations, it cautioned investors about the fourth quarter due to "what is likely to be a highly promotional holiday season." Its shares experienced their biggest gain since June 2020 on November 22, 2022, rising as much as 15%.
November 22's earnings reports from Abercrombie and American Eagle follow better-than-forecast third-quarter earnings from brands including Gap Inc. and Urban Outfitters Inc., which both saw more robust sales growth at their higher-end brands.
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