Abercrombie & Fitch
The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Abercrombie & Fitch beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins grew across the board.
Abercrombie & Fitch reported revenue of $1.17 billion. The 29 analysts polled by S&P Capital IQ expected revenue of $1.11 billion on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $1.08 billion.
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 $0.87. The 32 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.87 for Q3 were 53% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.5%, 240 basis points better than the prior-year quarter. Operating margin was 9.6%, 210 basis points better than the prior-year quarter. Net margin was 6.1%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $1.85.
Next year's average estimate for revenue is $4.56 billion. The average EPS estimate is $2.95.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 827 members out of 1,152 rating the stock outperform, and 325 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 247 give Abercrombie & Fitch a green thumbs-up, and 65 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 $38.42.
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