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.
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.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.