UPDATE: Abercrombie & Fitch Lowers Full-Year Earnings Outlook

Loading...
Loading...
Abercrombie & Fitch
ANF
reported a profit in the fiscal third quarter. However, the company's revenue missed analysts' estimates. The company also lowered its earnings forecast for the full year. The New Albany, Ohio-based company posted quarterly net income of $18.2 million, or $0.25 per share, versus a year-ago net loss of $15.6 million, or $0.20 per share. Its adjusted earnings came in at $30.4 million, or $0.42 per share, versus a year-ago profit of $40.5 million, or $0.52 per share. Its revenue declined 12% to $911 million, while same-store sales slipped 10%. However, analysts were expecting earnings of $0.41 per share on revenue of $918.29 million. US sales dropped 12% to $594 million, while international sales slipped 12% to $317 million. Comparable sales fell 6% for Abercrombie & Fitch brand, while sales declined 10% for Abercrombie Kids. Sales dropped 12% for Hollister brand. The gross profit rate shrank 80 basis points to 62.2%. It ended the quarter with $617.5 million in inventory at cost, a 20% drop versus the earlier year. During the quarter, Abercrombie & Fitch repurchased around 2.0 million shares of its common stock at an aggregate cost of $75 million. Abercrombie & Fitch ended the quarter with $320.6 million in cash and cash equivalents and gross borrowings of $300 million, versus $257.5 million in cash and cash equivalents and gross borrowings of $138.8 million previous year. Mike Jeffries, Chief Executive Officer, said: "As referenced in our earlier Business Update, our third quarter results were disappointing in what remains a very challenging environment for young apparel. Comparable sales improved somewhat in November, and this improvement was maintained through the Black Friday weekend. However, we expect conditions to remain difficult through the balance of the fourth quarter.” For the full-year, Abercrombie & Fitch now projects earnings of $1.50 to $1.65 per share, versus its earlier outlook of $2.15 to $2.35 per share. Analysts expected earnings of $1.74 per share. It expects Q4 comparable sales to decline by a mid-to-high single-digit percentage. Abercrombie & Fitch shares declined 5.35% to $26.35 in pre-market trading.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceprofit
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...