Abercrombie & Fitch
The 10-second takeaway
For the quarter ended April 28 (Q1), Abercrombie & Fitch missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Abercrombie & Fitch logged revenue of $921.2 million. The 28 analysts polled by S&P Capital IQ anticipated net sales of $953 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $836.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.03. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.03 for Q1 were 89% lower than the prior-year quarter's $0.28 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.6%, 240 basis points worse than the prior-year quarter. Operating margin was 0.7%, 400 basis points worse than the prior-year quarter. Net margin was 0.3%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $4.62 billion. The average EPS estimate is $3.48.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 807 members rating the stock outperform and 328 members rating it underperform. Among 305 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 give Abercrombie & Fitch a green thumbs-up, and 74 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abercrombie & Fitch is outperform, with an average price target of $54.98.
If you're invested in retailers like Abercrombie & Fitch, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Abercrombie & Fitch to My Watchlist.