Abercrombie Shares Rising on Plans, Not Results (ANF)

Before you go, we thought you'd like these...
Before you go close icon

Abercrombie & Fitch Co. (NYSE: ANF) reported second-quarter earnings per share (EPS) of $0.19 and $951.4 million in revenues before the markets opened this morning. In the same period a year ago, the clothing retailer reported EPS of $0.35 on revenue of $916.8 million. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.17 and $994 million in revenue.

The company's chairman and CEO said:

The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter. In particular, we saw a further deceleration in the trend in our international stores, while our U.S. chain stores also comped negatively for the quarter for the first time since 2009.

Same-store sales declined 10% compared with the same period a year ago, and the gross profit for the quarter came in at 62.5%, down 110 basis points from a year ago. The company attributed the drop in gross profits to increased costs and the negative impact of currency exchange rates.

A&F forecast adjusted EPS of $2.50 to $2.75 for the full-year, compared with a consensus estimate of $2.56. The forecast assumes a 10% decline in same-store sales. The company also has lowered its planned openings of its Hollister-brand stores from 40 to 30 and a "pause" in openings of new flagship stores except in Shanghai, among other actions to reduce costs.

The company also said that it would pay its quarterly dividend of $0.175, in line with previous payments, and that it had increased its share repurchase plan by 10 million shares, bringing the total in its existing buyback authorization to 22.9 million shares. The company's float totals about 81.4 million shares.

The EPS beat, the dividend payment, the guidance changes and the bump in the company's buyback plan are boosting A&F's share price this morning. Shares are trading more than 6% higher in the premarket at $34.47. The current 52-week range is $28.64 to $77.49. Thomson Reuters had a consensus analyst price target of $34.64 before today's results were announced.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Consumer Goods, Earnings, Pre-Market Activity, Retail Tagged: ANF
Read Full Story

Markets

S&P 500 2,361.13 2.56 0.11%
DJIA 20,659.32 -42.18 -0.20%
NASDAQ 5,897.55 22.41 0.38%
DAX 12,203.00 53.58 0.44%
NIKKEI 225 19,139.80 -77.68 -0.40%
HANG SENG 24,277.76 -114.29 -0.47%
USD (per EUR) 1.08 0.00 -0.06%
USD (per CHF) 1.00 0.00 0.08%
JPY (per USD) 111.24 0.08 0.08%
GBP (per USD) 1.24 0.00 0.01%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked
This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge