Abercrombie & Fitch Earnings Cheat Sheet: Beats Expectations

S&P 500 (NYSE:SPY) component Abercrombie & Fitch (NYSE:ANF) reported net income above Wall Street’s expectations for the second quarter. Abercrombie & Fitch Company (A&F) is an American specialty retailer company, which, through its wholly-owned subsidiaries, operates stores and direct sales of casual apparel for men, women and kids.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Abercrombie & Fitch Earnings Cheat Sheet for the Second Quarter

Results: Net income for the apparel store rose to $32 million (35 cents per share) vs. $19.5 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 64.4% from the year earlier quarter.

Revenue: Rose 22.9% to $916.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ANF beat the mean analyst estimate of 29 cents per share. It beat the average revenue estimate of $880.1 million.

Quoting Management: “We are pleased that our results for the quarter continued to reflect strong momentum, both in the US and Europe, resulting in a 71% increase in operating income for the quarter. Going forward, our focus remains very much on execution against our long-term strategy and roadmap objectives. Costing pressures will be greater in the second half of the year, and macroeconomic uncertainty has increased. However, our strong top-line momentum and overall performance for the past several quarters give us confidence that we are well positioned to navigate through this environment.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 27.3% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 16 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Gross margin shrank 1.5 percentage points to 63.6%. The contraction appeared to be driven by increased costs, which rose 28.1% from the year earlier quarter while revenue rose 22.9%.

Competitors to Watch:

ile cost of sales rose 14.3% to $293 million from a year earlier.

Competitors to Watch: Urban Outfitters, Inc. (NASDAQ:URBN), American Eagle Outfitters (NYSE:AEO), The Buckle, Inc. (NYSE:BKE), Aeropostale, Inc. (NYSE:ARO), The Gap Inc. (NYSE:GPS), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), dELiA*s, Inc. (NASDAQ:DLIA), Zumiez Inc. (NASDAQ:ZUMZ), The Wet Seal, Inc. (NASDAQ:WTSLA).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)