Abercrombie & Fitch (ANF) Tops Q4 EPS by 8c, Offers Guidance

Abercrombie & Fitch (NYSE: ANF) reported Q4 EPS of $1.31, $0.08 better than the analyst estimate of $1.23. Revenue for the quarter came in at $1.18 billion versus the consensus estimate of $1.17 billion.

• Positive comparable sales of 1% against positive 3% comparable sales last year.

Fiscal 2020 Full Year Outlook Including Estimated First Half Impact of COVID-19

For fiscal 2020, the company expects:

Net sales to be flat to up 2%, reflecting the estimated adverse impact of COVID-19 in the range of $60 million to $80 million and the adverse impact of changes in foreign currency exchange rates of approximately $10 million.

Comparable sales to be down low-single digits, reflecting the estimated adverse impact of COVID-19 of approximately 200 basis points. This compares to positive comparable sales of 1% last year.

Gross profit rate to be down in the range of 50 basis points to 70 basis points as compared to the fiscal 2019 rate of 59.4%, reflecting an estimated adverse impact from COVID-19 in the range of 50 basis points to 70 basis points and the adverse impact from changes in foreign currency exchange rates of approximately 30 basis points.

Operating expense, excluding other operating income, to be approximately flat from fiscal 2019 adjusted non-GAAP operating expense of $2.07 billion, which included $47 million of flagship store exit charges.

Effective tax rate to be in the upper 20s to low 30s.

Diluted weighted average shares of approximately 65 million shares, excluding the effect of potential share buybacks.

Capital expenditures of approximately $175 million.

See the company's fourth quarter investor presentation for additional information regarding the impacts of COVID-19.

Fiscal 2020 First Quarter Outlook Including Estimated Impact of COVID-19

For the first quarter of fiscal 2020, the company expects:

Net sales to be down mid-single digits, reflecting the estimated adverse impact of COVID-19 in the range of $40 million to $50 million and the adverse impact of changes in foreign currency exchange rates of approximately $5 million.

Comparable sales to be down mid-single digits, reflecting the estimated adverse impact from COVID-19 of approximately 600 basis points. This compares to positive comparable sales of 1% last year.

Gross profit rate to be down in the range of 100 basis points to 150 basis points as compared to the fiscal 2019 rate of 60.5%, reflecting an estimated adverse impact from COVID-19 of approximately 100 basis points and the combined adverse impact from changes in foreign currency exchange rates and anticipated China tariffs of approximately 50 basis points.

Operating expense, excluding other operating income, to be in the range of flat to up 2% from fiscal 2019 adjusted non-GAAP operating expense of $472 million.

Effective tax rate to be in the upper 20s.

For earnings history and earnings-related data on Abercrombie & Fitch (ANF) click here.

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