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Friday, November 18, 2016

Abercrombie & Fitch (ANF) reported earnings Fri 18 Nov 2016 (b/o)

** charts before earnings **


  





** charts after earnings **


  

  • One month later:


Abercrombie & Fitch misses by $0.22, misses on revs; sees challenging but sequentially improved Q4 comps with adj. gross margin down slightly Y/Y  :
  • Reports Q3 (Oct) earnings of $0.02 per share, excluding non-recurring items, $0.22 worse than the Capital IQ Consensus of $0.24; revenues fell 6.5% year/year to $821.7 mln vs the $832.48 mln Capital IQ Consensus. 
    • Comps -6% vs ests just below -4%; with A&F -10% and Hollister -1%.
  • By geography, net sales for the third quarter decreased 7% to $531.4 million in the U.S. and decreased 5% to $290.3 million in international markets over last year.
  • Direct-to-consumer and omnichannel sales grew to ~23% of total company net sales for the third quarter, compared to ~21% of total company net sales last year.
  • The gross profit rate for the third quarter was 62.2%. Excluding certain items last year, the gross profit rate decreased 60 basis points on a constant currency basis, primarily due to lower average unit retail, partially offset by lower average unit cost.
  • Q4 guidance:
    • Comparable sales to be challenging, but modestly improved from the third quarter (ests near -3.2%)
    • Continued adverse impact from foreign currency on sales and operating income.
    • A gross margin rate down slightly to last year's adjusted non-GAAP rate of 60.7%, driven by lower average unit retail, partially offset by lower average unit cost

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