How Abercrombie & Fitch Fell Flat in Q2
Abercrombie & Fitch shares plunged after it reported mixed quarterly results before the markets opened on Thursday.
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Abercrombie & Fitch Co. (NYSE: ANF | ANF Price Prediction) reported its most recent quarterly results before the markets opened on Thursday. The firm posted a net loss of $0.48 per share and $841.08 million in revenue. Consensus estimates had called for a net loss of $0.53 per share and $852.47 million in revenue, while the fiscal second quarter of last year reportedly had $0.06 in earnings per share and $842.41 million in revenue.
During the most recent quarter, net sales decreased 0.2% year over year, while comparable sales remained flat compared with positive comparable sales of 3% from last year.
In terms of its segments, Abercrombie & Fitch reported as follows:
- Hollister net sales increased 1% year over year to $504.76 million, an increase of 2% in constant currency.
- Abercrombie net sales decreased 2% to $336.32 million, a decrease of 1% in constant currency.
Looking ahead to the fiscal third quarter, the company expects to see net sales up about 1% and comparable sales to be flat. Consensus estimates are calling for $0.36 in EPS and $882.6 million in revenue for the coming quarter.
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CEO Fran Horowitz commented:
Trends improved throughout the second quarter, enabling us to deliver constant currency revenue growth and meet our previously-issued comp and gross profit rate outlook, while continuing to tightly manage expenses. Importantly, we have had a solid start to back-to-school in the U.S. and we look forward to building on that momentum in the back half through exciting product and cohesive marketing campaigns.
Shares of Abercrombie & Fitch traded down about 10% at $15.36 early Thursday. The 52-week range is $14.66 to $30.63, and the consensus price target is $19.60.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
