Abercrombie & Fitch Co. Beats Earnings and Revenue Estimates

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Abercrombie & Fitch ($NYSE:ANF) Co., the iconic American retail apparel company, reported strong earnings and revenue that beat estimates for the quarter. The apparel company reported a Non-GAAP EPS of $1.83, surpassing estimates by $0.76, and total revenue of $1.06B, which is higher than the projected $77.6M. Abercrombie & Fitch Co. is a well-known clothing retail company that caters to an audience of young adults.

Earnings

ABERCROMBIE & FITCH Co. released its earning report of FY2024 Q2 ending July 31 2021, and successfully exceeded expectations with a total revenue of 864.85M USD and a net income of 108.5M USD. Compared to the same period of the previous year, this represented a 7.4% increase in total revenue and a 744.7% decrease in net income. In the last 3 years, ABERCROMBIE & FITCH’s total revenue steadily increased from 864.85M USD to 935.34M USD. Overall, ABERCROMBIE & FITCH has demonstrated strong growth and financial stability, despite its recent financial performance being lower than the previous year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ANF. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ANF. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ANF. More…

Key Ratios Snapshot

Some of the financial key ratios for ANF are shown below. More…

Share Price

During the day, ANF stock opened at $70.2 and closed at $74.0, up by 2.4% from the previous day’s closing price of 72.3. This increase was driven by better-than-expected earnings and revenues, as well as an increased focus on digital operations which has been helping the company to stay afloat despite the effects of the pandemic. The company attributed its strong performance to better inventory management, smart cost containment initiatives, and an increased focus on digital operations in an attempt to fight the effects of the pandemic.

They have also been investing in their e-commerce platform to drive sales and expand their customer base. The company is continuing to focus on digital operations to drive sales and expand its customer base in an attempt to stay afloat despite the pandemic’s effects. Live Quote…

Analysis

As part of GoodWhale’s analysis of ABERCROMBIE & FITCH’s wellbeing, we used our Star Chart to evaluate their financial health. The results give ABERCROMBIE & FITCH a high health score of 8/10, indicating that they are likely able to safely ride out any crisis without the risk of bankruptcy. We classify ABERCROMBIE & FITCH as a ‘rhino’, a type of company we conclude has achieved moderate revenue or earnings growth. It is strong in asset, medium in profitability and weak in dividend, growth. These characteristics tend to make ABERCROMBIE & FITCH attractive to investors looking for a stable company to invest in, such as mutual fund managers, index funds, and retirement funds. More…

Peers

Competition between Abercrombie & Fitch Co and its competitors, Gap Inc, Children’s Place Inc, and Ross Stores Inc, is fierce. All four companies specialize in retail apparel and strive to offer their customers the best products and services. As a result, each company constantly works to outpace the others in terms of product offerings, store locations, and customer service.

– Gap Inc ($NYSE:GPS)

Gap Inc is a leading apparel retail company based in San Francisco, California. The company offers apparel, accessories, and personal care products for men, women, and children through its brands, which include Gap, Old Navy, Banana Republic, Athleta, and Intermix. As of 2022, Gap Inc. has a market capitalization of 4.4 billion dollars and a return on equity of -0.62%. This is lower than the industry average for apparel retail companies, indicating that the company has not been able to generate a satisfactory return on its equity investments. However, the company’s market capitalization of 4.4 billion dollars suggests that investors are still confident in the company’s future prospects.

– Children’s Place Inc ($NASDAQ:PLCE)

Children’s Place Inc is a popular children’s apparel retailer with a market cap of 461.48M as of 2022. The company offers a variety of clothing, accessories, and footwear for kids ranging from newborn to age 14. They have an impressive Return on Equity of 41.18%, which is a measure of the company’s ability to generate income from shareholders’ investments. This is a strong indicator of the company’s financial health and its ability to make efficient use of capital. The Children’s Place Inc is well-positioned to continue to provide great products and services to its customers in the years to come.

– Ross Stores Inc ($NASDAQ:ROST)

Ross Stores Inc is a leading off-price retailer in the United States. It operates 1,400 stores in 39 states, the District of Columbia, and Guam. The company offers apparel, accessories, footwear, and home fashions at discounts of 20% to 60% below department and specialty store regular prices. As of 2022, Ross Stores Inc has a market capitalization of 39.77B and a Return on Equity (ROE) of 29.12%. This reflects the company’s strong financial performance and ability to generate significant returns for its shareholders. Ross Stores has consistently recorded positive earnings growth for over 10 years and is well positioned for future growth.

Summary

Abercrombie & Fitch Co. reported non-GAAP earnings of $1.83 per share, exceeding estimates by $0.76. Revenue was reported at $1.06 billion, beating the consensus by $77.6 million. Analysts are encouraged by the strong results and remain optimistic for the company’s performance going forward. The strong earnings and revenue growth can be attributed to the company’s focus on cost cutting and improved sales execution.

The company has also been benefiting from its new product assortment and increased investments in digital marketing. Investors will continue to watch to see if Abercrombie & Fitch Co. can maintain its momentum in the coming quarters and sustain its positive performance.