Abercrombie & Fitch
The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Abercrombie & Fitch met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Abercrombie & Fitch booked revenue of $1.47 billion. The 29 analysts polled by S&P Capital IQ hoped for net sales of $1.49 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.33 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 $2.21. The 33 earnings estimates compiled by S&P Capital IQ averaged $1.95 per share. Non-GAAP EPS of $2.21 for Q4 were 97% higher than the prior-year quarter's $1.12 per share. GAAP EPS of $2.15 for Q4 were much higher than the prior-year quarter's $0.23 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 65.3%, 920 basis points better than the prior-year quarter. Operating margin was 18.6%, 810 basis points better than the prior-year quarter. Net margin was 11.8%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $963.7 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $4.85 billion. The average EPS estimate is $3.51.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 826 members out of 1,153 rating the stock outperform, and 327 members rating it underperform. Among 314 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 242 give Abercrombie & Fitch a green thumbs-up, and 72 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 $49.72.
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