Abercrombie & Fitch beats by $0.10, reports revs in-line, comps +3%; reaffirms FY19 guidance
- Reports Q2 (Jul) earnings of $0.06 per share, excluding non-recurring items, $0.10 better than the S&P Capital IQ Consensus of ($0.04); revenues rose 8.1% year/year to $842.41 mln vs the $845.11 mln S&P Capital IQ Consensus.
- Comparable sales increased 3%, with Hollister up 4% and Abercrombie up 2%
- The gross profit rate was 60.2%, up 110 basis points from last year, and up approximately 70 basis points from last year on a constant currency basis, net of hedging.
- Co reaffirms guidance for FY19, sees FY19 revs of $3.56-3.63 bln (+2-4%) vs. $3.57 bln S&P Capital IQ Consensus; continues to see Comparable sales up in the range of 2% to 4%
- Q3: Sees net sales approximately flat to last year (in-line with estimates for growth of 0.1% to $860.2 mln)
- "We are pleased with our second quarter performance, capping off a strong first half of the year. During the second quarter, we delivered both top and bottom line growth, while continuing to invest in the transformation of our business. Our results reflect another quarter of profit improvement fueled by comparable sales growth across both brands, gross margin expansion and expense leverage as we continue to execute our playbooks. Hollister continued its momentum with another quarter of strong sales growth and Abercrombie posted its third consecutive quarter of positive comparablesales, led by strength in the U.S...Our customers remain at the center of all we do, and that singular focus continues to improve brand health metrics and drive our brands forward. We continue to make tangible progress in our transformation efforts, and after a strong first half of the year, we remain on track to achieve our full year 2018 expectations and our longer term 2020 targets."
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