May 27 (Reuters) – Abercrombie & Fitch beat quarterly profit estimates, helped by demand in the U.S., but flagged some weakness in its Europe, the Middle East and Africa segment due to the ongoing conflict with Iran.
Shares of the company, which also maintained its annual forecasts, were up 4% in premarket trading. They have declined more than 40% so far this year.
The company has been targeting affluent shoppers — a large chunk of its customer base — who spend freely, while discounts lured in shoppers from lower-income, value-conscious households.
This helped the company counter macroeconomic uncertainty in the U.S. and record sales growth of 3% in its Americas segment for the three months ended May 2.
Abercrombie recorded a 24% rise in sales in its Asia Pacific segment. Sales in the Europe, the Middle East and Africa segment, however, fell 10%.
The company had warned of a “slight sales hit” from the Middle East conflict in March.
Abercrombie reported quarterly adjusted net income per share of $1.47, above expectations of $1.28.
The apparel retailer posted a 2% rise in net sales to $1.1 billion. Analysts on average estimated sales of $1.12 billion, according to data compiled by LSEG.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Joyjeet Das)
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