Abercrombie & Fitch
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.
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 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.
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.)
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.
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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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.