Abercrombie Rallies as Strong Q1 Earnings Extend Winning Streak

Summary

Abercrombie & Fitch Co. NYSE: ANF surged Wednesday after the retailer delivered another quarter of better-than-expected earnings and extended its streak of sales growth to 14 consecutive quarters. Shares of the apparel and accessories retailer, whose core brands include Abercrombie and Hollister, jumped about 12% following the report, helping revive momentum in a stock that has been under heavy pressure in recent months.Get Abercrombie & Fitch alerts:Sign Up Abercrombie Extends Winning StreakAbercrombie reported first-quarter earnings of $1.47 per share, down from $1.59 a year earlier, though the result handily topped Wall Street expectations for $1.26 per share. Revenue rose 1.5% year over year to $1.1 billion, but was roughly $8.2 million short of analysts’ estimates. Operating margin was 8% of sales, above the company’s outlook of around 7%. Abercrombie & Fitch TodayANFAbercrombie & Fitch$85.31 +10.53 (+14.08%) As of 02:56 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$65.45▼$133.11P/E Ratio8.10Price Target$116.00 Results were supported by strength in the Americas, where sales rose 3%, and the Asia-Pacific (APAC) region, which posted 24% growth. The company saw weakness in Europe, the Middle East, and Africa (EMEA), however, as the ongoing conflict in the Middle East weighed on consumer demand. In terms of brand performance, Abercrombie brands posted 3% year-over-year net sales growth, while Hollister reported flat net sales and a 2% decline in comparable sales. The company also said it completed the implementation of its upgraded merchandising enterprise resource planning (ERP) system, helping to ease investor concerns about further disruptions tied to the transition. Outlook Remains Intact Despite Middle East HeadwindsAbercrombie issued a second-quarter outlook and reiterated its full-year guidance. For the second quarter, the company said it anticipates net sales growth of 2% to 4%, with net income per diluted share ...