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Abercrombie & Fitch Goes Red

By Seth Jayson - Updated Apr 10, 2017 at 12:09PM

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Just the facts, Fool.

Abercrombie & Fitch (NYSE: ANF) reported earnings on May 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Abercrombie & Fitch whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. GAAP earnings per share dropped to a loss.

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
Abercrombie & Fitch reported revenue of $838.8 million. The 29 analysts polled by S&P Capital IQ expected a top line of $937.9 million on the same basis. GAAP reported sales were 8.9% lower than the prior-year quarter's $921.2 million.

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 -$0.09. The 32 earnings estimates compiled by S&P Capital IQ forecast -$0.05 per share. GAAP EPS were -$0.09 for Q1 compared to $0.03 per share for the prior-year quarter.

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 65.9%, 330 basis points better than the prior-year quarter. Operating margin was -1.7%, 230 basis points worse than the prior-year quarter. Net margin was -0.9%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $4.60 billion. The average EPS estimate is $3.31.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 817 members out of 1,153 rating the stock outperform, and 336 members rating it underperform. Among 308 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 245 give Abercrombie & Fitch a green thumbs-up, and 63 give it a red thumbs-down.

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