Abercrombie & Fitch Increases Sales but Misses Estimates on Earnings
Abercrombie & Fitch (NYS: ANF) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Abercrombie & Fitch met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Abercrombie & Fitch recorded revenue of $1.33 billion. The 28 analysts polled by S&P Capital IQ foresaw revenue of $1.33 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.12. The 35 earnings estimates compiled by S&P Capital IQ anticipated $1.16 per share on the same basis. GAAP EPS of $0.22 for Q4 were 79% lower than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.1%, 750 basis points worse than the prior-year quarter. Operating margin was 1.8%, 1,470 basis points worse than the prior-year quarter. Net margin was 1.5%, 660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $954.9 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $4.73 billion. The average EPS estimate is $3.52.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 811 members out of 1,150 rating the stock outperform, and 339 members rating it underperform. Among 324 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 254 give Abercrombie & Fitch a green thumbs-up, and 70 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abercrombie & Fitch is outperform, with an average price target of $62.47.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.