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Abercrombie & Fitch Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 10, 2017 at 2:17PM

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Just the facts, Fool.

Abercrombie & Fitch (NYSE: ANF) reported earnings on Feb. 22. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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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 position in any of the stocks mentioned. 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.

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