Abercrombie & Fitch is already being forced to resort to promotions. The apparel retailer reported ($0.25) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.20) by $0.05.
Advertisement
Martinez said the company expects to see “traction” from its investments in marketing and new products. Equities research analysts at William Blair cut their Q4 2017 earnings per share (EPS) estimates for shares of Abercrombie & Fitch Co.in a report released on Tuesday. “They have a more refined sensibility, a great sense of themselves, and the imagery that used to be used was created to provoke”, he said.
The specialty retailer disclosed revenue of $783.2 million, which surpassed the Street’s estimate by $1.1 million. Comps were down 4% in both the U.S. and global regions, and declined 7% at the company’s core A&F brand, and 2% at Hollister. In the quarter, this figure fell by 4% with the company seeing significant headwinds in the flagship and tourist locations. Hollister brand stores saw same-store sales from 2% year-over-year, while namesake Abercrombie locations posted a 7% drop. During fiscal 2016, the company expects to open about 15 new outlets, comprising approximately 10 in global markets, mainly in China, and approximately 5 in the U.S. The company also plans to open 6 new outlet stores, principally in the U.S. The company also plans to shutter approximately 60 stores in the U.S. The Average price target is noted at $23.03, this average price is calculated and based on coming up with go through the consensus of analysts and stock’s current price is placed at $18.29. In a statement, analyst Betty Chen had the following to offer…
The teen-focused retailer, which has a single store in the Sarasota-Bradenton market, also offered a downbeat outlook for a key sales measure, as business continues to be hurt by a decline in tourists to its flagships in key cities. “We do believe the composition of inventory buys, product and store presentation, and fashion is better”.
Unfortunately, the news above wasn’t positive for ANF. The stock has now lost about a third of its value so far in 2016. The consensus price target stands at $20.00, marking a 9% upside from where the stock is now trading.
Advertisement
“Once all the rage, Abercrombie & Fitch has fallen into disfavor with youngsters, who are now flocking to cheaper and trendier fare offered by fashion brands such as Forever 21, Zara, and H&M”, investment analyst John Persinos wrote in TheStreet Monday. Revenue for the same quarter is predicted to arrive at $782.71M.
