Abercrombie & Fitch Earnings: Here’s Why Investors are Selling Shares 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 down 10.61%.

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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 $941.66 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.”

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 negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $3.63 to a profit of $3.49 over the last ninety days.

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