Abercrombie & Fitch Co. (NYSE: ANF) released its most recent quarterly results before the markets opened on Wednesday. The company said that it had $1.38 in earnings per share (EPS) on $1.19 billion in revenue, compared with consensus estimates that called for $1.10 in EPS on revenue of $1.16 billion. In the fiscal fourth quarter of last year, the retailer said it had EPS of $0.75 and $1.04 billion in revenue.
During the quarter, comparable sales increased a whopping 9%. By brand, net sales increased 19% to $709.2 million for Hollister and increased 9% to $484.0 million for Abercrombie from last year.
Also direct-to-consumer net sales grew to approximately 34% of total company net sales, compared to roughly 31% last year.
In terms of the outlook for the 2018 full year, the company expects to see comparable sales as well as net sales up in the low single digits. The Wall Street consensus estimates for the fiscal first quarter are a net loss of $0.63 per share and $688.5 million in revenue.
On the books, Abercrombie cash and cash equivalents totaled $675.6 million at the end of the quarter, up from $547.2 million at the end of the previous year.
CEO Fran Horowitz commented:
Overall, 2017 was a year of significant progress. We achieved several important milestones, including Hollister growing to $2 billion in sales, Abercrombie returning to positive comparable sales for the fourth quarter and record digital sales across all brands. We continue to improve the customer experience with ongoing investments in loyalty programs, stores, direct-to-consumer and omnichannel capabilities.
We have a strong balance sheet, proven cost management discipline and a clear plan for building on the foundations we laid in 2017. In 2018, we will continue to focus our attention and our investments on engaging our customers with compelling assortments and new experiences, in clearly defined brand voices, positioning our business for sustainable long-term growth.
Shares of Abercrombie & Fitch were up about 8% at $23.03 early Wednesday, with a consensus analyst price target of $19.85 and a new 52-week range of $8.81 to $23.65.