Abercrombie & Fitch Co. (ANF) reported fourth quarter net income attributable to A&F of $38.33 million compared to $65.51 million, prior year. Net income per share was $0.75 compared to $1.12.
Net income per share was $0.81 on an adjusted non-GAAP basis, compared to $1.14. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.86, for the quarter. Analysts' estimates typically exclude special items.
Gross profit rate for the fourth quarter declined 260 basis points as compared to last year to 55.7%, driven by the adverse impact of exchange rates and higher product costs with higher cotton costs and inventory reserves more than offsetting lower freight costs.
Net sales were $1.2 billion, up 3% as compared to last year on a reported basis and 5% on a constant currency basis. The growth in sales was led by 14% growth in Abercrombie brands. Analysts on average had estimated $1.18 billion in revenue.
For fiscal 2023, the company expects net sales growth in the range of 1 to 3%. For the first quarter of fiscal 2023, the company expects net sales to be around flat to fiscal first quarter 2022 level of $813 million.
"As we look to 2023, we remain cautiously optimistic on consumer demand," said Fran Horowitz, CEO.
Shares of Abercrombie & Fitch Co. are down 3% in pre-market trade on Wednesday.
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