Abercrombie & Fitch Co. Earnings: Here’s Why Shares are Up Now

Abercrombie & Fitch Co. (NYSE:ANF) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.8%.

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Abercrombie & Fitch Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.09 in the quarter versus EPS of $-0.25 in the year-earlier quarter.

Revenue: Decreased 8.95% to $838.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Abercrombie & Fitch Co. reported adjusted EPS loss of $0.09 per share. By that measure, the company missed the mean analyst estimate of $-0.05. It missed the average revenue estimate of $941.25 million.

Quoting Management: Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: “Our results for the first quarter reflect a sixteen cent improvement in earnings per share versus last year, including better than expected gross margin rate improvement and tight expense management. The first quarter proved to be more difficult than expected on the top-line due to more significant inventory shortage issues than anticipated, added to by external pressures. However, comparable sales trends progressively improved during the quarter and with the inventory headwinds largely behind us, we expect to see continued sequential improvement in the second quarter. We are also making good progress on our cross-functional initiatives, which we expect will generate substantial operating margin improvement on a sustainable, long-term basis.”

Key Stats (on next page)…

Revenue decreased 42.88% from $1.47 billion in the previous quarter. EPS decreased to $-0.09 in the quarter versus EPS of $2.01 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.30 to a profit $0.31. For the current year, the average estimate is a profit of $3.49, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)