Abercrombie & Fitch Earnings: Net Income Sinks

S&P 500 (NYSE:SPY) component Abercrombie & Fitch (NYSE:ANF) reported its results for the fourth quarter. Abercrombie & Fitch is an American specialty retailer company that, through its wholly-owned subsidiaries, operates stores and direct sales of casual apparel for men, women, and children.

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Abercrombie & Fitch Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the apparel store fell to $19.6 million (22 cents per share) vs. $92.6 million ($1.03 per share) a year earlier. This is a decline of 78.8% from the year earlier quarter.

Revenue: Rose 15.6% to $1.33 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Abercrombie & Fitch reported adjusted net income of $1.12 per share. By that measure, the company fell in line with the mean estimate of $1.12 per share. Analysts were expecting revenue of $1.33 billion.

Quoting Management: Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: “Our results for the fourth quarter were below our expectations in an extremely challenging environment. However, we are confident that we are on track with our long term strategy of leveraging the international appeal of our iconic brands to build a highly profitable, sustainable, global business. The overall economics of our business in Europe, in our U.S. tourist stores and in our DTC business remain very strong.”

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 21.8%, 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 fell in line with estimates last quarter after missing forecasts in the previous quarter with net income of 57 cents versus a mean estimate of net income of 73 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 37 cents a share to 12 cents over the last ninety days. The average estimate for the fiscal year is $2.34 per share, down from $3.07 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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