Despite Ongoing Weakness in Comps, Abercrombie & Fitch (ANF) Moves Higher
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Price: $54.24 +1.73%
EPS Growth %: +97.3%
Financial Fact:
OPERATING INCOME: 112.4M
Today's EPS Names:
LBIX, ESEA, ISS, More
EPS Growth %: +97.3%
Financial Fact:
OPERATING INCOME: 112.4M
Today's EPS Names:
LBIX, ESEA, ISS, More
Trade ANF Now!
Shares of Abercrombie & Fitch (NYSE: ANF) are moving higher in premarket trading on Wednesday. The retailer reported revenue of $951.4 million, slightly lower than analyst estimates but a 4 percent better than last year's sales of $916.8 million. EPS of $0.19 beat analyst expectations by 2c.
In terms of share price, it has been a difficult quarter for the retailer. Since May the stock has declined 39 percent. The drive lower was in part due to unimpressive comps and a weak macro environment. So far those trends have not reversed.
Total comparable store sales for the quarter decreased 10 percent relative to last year. By brand, comparable store sales decreased 11 percent for Abercrombie & Fitch, 10 percent for abercrombie kids, and 10% for Hollister Co.
"The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter,” said Mike Jeffries, CEO and Chairman of Abercrombie & Fitch. “In particular, we saw a further deceleration in the trend in our international stores, while our U.S. chain stores also comped negatively for the quarter for the first time since 2009. Our direct to consumer business remained a bright spot, posting its tenth successive quarter with growth of 25% or better."
Looking at the rest of year, Abercrombie & Fitch sees full year EPS of $2.50-$2.75, which compares to the consensus of $2.66 and sees comparable stores sales down 10 percent in the second-half of the year.
Abercrombie also increased its existing share buyback plan by ten million shares. This brings the plan to 22.9 million shares.
Investor are reacting to today's report and Jeffries' comments by pushing the share price higher, which may paint a clear picture of the degree of pessimism investors had going into the report. Huge questions remain for Abercrombie, but for now investors are relieved that the second quarter of 2012 is behind them.
Shares of Abercrombie & Fitch last traded at $34.79, up 7.6 percent.
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In terms of share price, it has been a difficult quarter for the retailer. Since May the stock has declined 39 percent. The drive lower was in part due to unimpressive comps and a weak macro environment. So far those trends have not reversed.
Total comparable store sales for the quarter decreased 10 percent relative to last year. By brand, comparable store sales decreased 11 percent for Abercrombie & Fitch, 10 percent for abercrombie kids, and 10% for Hollister Co.
"The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter,” said Mike Jeffries, CEO and Chairman of Abercrombie & Fitch. “In particular, we saw a further deceleration in the trend in our international stores, while our U.S. chain stores also comped negatively for the quarter for the first time since 2009. Our direct to consumer business remained a bright spot, posting its tenth successive quarter with growth of 25% or better."
Looking at the rest of year, Abercrombie & Fitch sees full year EPS of $2.50-$2.75, which compares to the consensus of $2.66 and sees comparable stores sales down 10 percent in the second-half of the year.
Abercrombie also increased its existing share buyback plan by ten million shares. This brings the plan to 22.9 million shares.
Investor are reacting to today's report and Jeffries' comments by pushing the share price higher, which may paint a clear picture of the degree of pessimism investors had going into the report. Huge questions remain for Abercrombie, but for now investors are relieved that the second quarter of 2012 is behind them.
Shares of Abercrombie & Fitch last traded at $34.79, up 7.6 percent.
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