Q4 Rundown: Abercrombie and Fitch (NYSE:ANF) Vs Other Apparel Retailer Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Abercrombie and Fitch (NYSE:ANF) and the best and worst performers in the apparel retailer industry.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 9 apparel retailer stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 1.7%. while next quarter's revenue guidance was 3.2% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and apparel retailer stocks have had a rough stretch, with share prices down 15.7% on average since the previous earnings results.

Abercrombie and Fitch (NYSE:ANF)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Abercrombie and Fitch reported revenues of $1.45 billion, up 21.1% year on year, topping analyst expectations by 1.5%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' revenue estimates.

Fran Horowitz, Chief Executive Officer, said, “I am incredibly proud of how we performed throughout fiscal 2023, finishing with fourth quarter year-over-year net sales growth of 21%, which exceeded our January business update expectations. Our strong fourth quarter was fueled by sales growth across regions and brands. Abercrombie brands grew net sales 35%, continuing an impressive multi-quarter growth trend, while Hollister brands grew 9%, delivering a third consecutive quarter of sales growth. By staying close to our customers, tightly controlling inventories and continuing to operate with financial discipline, our team delivered year-over-year fourth quarter operating margin expansion of 800 basis points, reaching 15.3%.

Abercrombie and Fitch achieved the fastest revenue growth of the whole group. The stock is down 19.8% since the results and currently trades at $112.22.

Is now the time to buy Abercrombie and Fitch? Access our full analysis of the earnings results here, it's free.

Best Q4: Gap (NYSE:GPS)

Operating under The Gap, Old Navy, Banana Republic, and Athleta brands, The Gap (NYSE:GPS) is an apparel and accessories retailer that sells its own brand of casual clothing to men, women, and children.

Gap reported revenues of $4.30 billion, up 1.3% year on year, outperforming analyst expectations by 1.7%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is up 17% since the results and currently trades at $22.6.

Is now the time to buy Gap? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Zumiez (NASDAQ:ZUMZ)

With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.

Zumiez reported revenues of $281.8 million, flat year on year, exceeding analyst expectations by 1.9%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

The stock is up 0.7% since the results and currently trades at $14.85.

Read our full analysis of Zumiez's results here.

Victoria's Secret (NYSE:VSCO)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Victoria's Secret reported revenues of $2.08 billion, up 3% year on year, falling short of analyst expectations by 0.1%. It was a mixed quarter for the company: While same store sales and revenue missed, gross margin outperformed and led to a narrow EPS beat vs Wall Street's estimates. On the other hand, its full-year revenue and operating income guidance missed analysts' expectations, with the latter quite a large amount below expectations.

The stock is down 27.4% since the results and currently trades at $18.6.

Read our full, actionable report on Victoria's Secret here, it's free.

Children's Place (NASDAQ:PLCE)

Offering sizes up to young teens, The Children’s Place (NASDAQ:PLCE) is a specialty retailer that sells its own brands of kid’s apparel and accessories.

Children's Place reported revenues of $480.2 million, down 5.7% year on year, surpassing analyst expectations by 3.4%. It was a slower quarter for the company, with same-store sales falling below expectations. While revenue guidance for next quarter was ahead, full-year earnings forecast underwhelmed.

Children's Place achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 71.2% since the results and currently trades at $8.25.

Read our full, actionable report on Children's Place here, it's free.

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