Stock up on stellar results
As of March 9, 2018, Abercrombie & Fitch (ANF) stock is up 4.4% after the company reported better-than-expected fiscal 4Q17 (fiscal 4Q17 ended on February 3, 2018) results on March 7, 2018. The stock went up 11.9% on March 7, 2018, following the announcement.
On a YTD (year-to-date) basis as of March 9, 2018, Abercrombie & Fitch’s stock price is up 27.9% to $22.30. In comparison, on a YTD basis, American Eagle Outfitters (AEO) is up 3.9% to $19.54 as of March 9, 2018, while Urban Outfitters (URBN) is up 2.3% to $35.88. However, Gap’s (GPS) stock price is down 2.9% to $33.07 as of March 9, 2018.
A look at the fiscal 4Q17 and 2017 numbers
Abercrombie & Fitch reported sales of $1.19 billion, which easily topped analysts’ estimate of $1.16 billion and grew 15.1% on a YoY basis. Adjusted EPS (earnings per share) of $1.38 came in way better than the analysts’ projection of $1.10. On a YoY basis, adjusted EPS were up 84%. The results benefited from the company’s strategic initiatives, which include cost cuts, a focus on digital and omnichannel, as well as the revamping of loyalty programs.
During the fiscal year, sales were up to $3.49 billion compared to the $3.46 billion projected by analysts, an increase of 5% on a YoY basis. The management said that Hollister sales topped $2 billion in fiscal 2017. Adjusted EPS for the fiscal year was $0.65, above the $0.34 projected by analysts and the adjusted loss per share of $0.06 reported in fiscal 2016.
In this series on Abercrombie & Fitch’s fiscal 4Q17 results, we’ll discuss the company’s sales, margin, and earnings performance in detail. We’ll also take a close look at analysts’ ratings for ANF.