Abercrombie & Fitch Co. (NYSE: ANF): Q1 Earnings Preview 2011

Abercrombie & Fitch Co. (NYSE: ANF) is scheduled to release first-quarter earnings before the opening bell on Wednesday, May 18, 2011. Analysts, on average, expect the company to report earnings of 12 cents per share on revenue of $825.64 million. In the year ago quarter, the company reported a loss of 13 cents per share on revenue of $687.80 million.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch Co. (A&F) through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations. At the end of the first quarter, the Company operated a total of 1,071 stores. The Company operated 316 Abercrombie & Fitch stores, 181 abercrombie kids stores, 502 Hollister Co. stores and 18 Gilly Hicks stores in the United States. The Company also operated nine Abercrombie & Fitch stores, four abercrombie kids stores, 40 Hollister Co. stores and one Gilly Hicks store internationally.  

In the preceding fourth-quarter, the New Albany, Ohio-based company's net income was $92.59 million, or $1.03 a share, compared to $47.46 million, or 53 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned $1.38 per share in the fourth quarter. Revenue climbed 23 percent to $1.149 billion from $935.99 million. Analysts, on average, expected the company to report earnings of $1.32 per share on revenue of $1.14 billion.

The company has cut prices to lure shoppers and increase market share in highly competitive apparel market. The company has benefited from aggressive promotions. 

The teen retailer's biggest strengths recently have been in direct-to-consumer sales - chiefly online - and international sales. However, few analysts fear that higher-than-usual discounting coupled with aggressive promotions could put pressure on margin.

The teen retailer registered robust comparable store sales growth during the first quarter. Early in May, the company reported net sales of $836.7 million for the fiscal quarter ended April 30, 2011, a 22% increase from net sales of $687.8 million for the fiscal quarter ended May 1, 2010. U.S. sales, including direct-to-consumer sales, increased 13% to $641.0 million. International sales, including direct-to-consumer sales, increased 64% to $195.7 million. Total Company direct-to-consumer sales, including shipping and handling, increased 32% to $105.8 million. Total comparable store sales for the quarter increased 10%. By brand, comparable store sales increased 8% for Abercrombie & Fitch, increased 11% for abercrombie kids, and increased 11% for Hollister Co. Within the quarter, April was very strong, including the effect of the calendar shift of the Easter holiday.

Abercrombie & Fitch plans to grow earnings to $4.75 per share in fiscal 2012 (ends January 2013). Abercrombie & Fitch also expects to reach sales in fiscal 2015 of $7.5 billion. Abercrombie & Fitch is counting on better growth opportunities overseas, and will invest in increasing the number of International Flagship stores and Hollister locations in Asia and Europe. Abercrombie & Fitch currently has five International Flagship stores open, including two in Asia and three in Europe. During the current fiscal year, the company plans to double this store base, with locations in Paris, Madrid and several other select cities. Abercrombie & Fitch plans some aggressive expansion here over the next few years with a long-term goal of approximately 30 stores. Another area of growth for Abercrombie & Fitch is in its Hollister brand in Europe. The company currently has 29 stores in four countries and has a long-term goal of increasing its store count to 185 across 15 countries. 

However, Abercrombie & Fitch is planning to shrink its store base in the United States and will close 50 locations during the current fiscal year. The company will also work to increase its U.S. store productivity with a goal of 90% of 2007 levels by 2012.

Full Disclosure: None.

Abercrombie & Fitch Co. (NYSE: ANF): Q1 Earnings Preview 2011

Abercrombie & Fitch Co. (NYSE: ANF) is scheduled to release first-quarter earnings before the opening bell on Wednesday, May 18, 2011. Analysts, on average, expect the company to report earnings of 12 cents per share on revenue of $825.64 million. In the year ago quarter, the company reported a loss of 13 cents per share on revenue of $687.80 million.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch Co. (A&F) through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations. At the end of the first quarter, the Company operated a total of 1,071 stores. The Company operated 316 Abercrombie & Fitch stores, 181 abercrombie kids stores, 502 Hollister Co. stores and 18 Gilly Hicks stores in the United States. The Company also operated nine Abercrombie & Fitch stores, four abercrombie kids stores, 40 Hollister Co. stores and one Gilly Hicks store internationally.  

In the preceding fourth-quarter, the New Albany, Ohio-based company's net income was $92.59 million, or $1.03 a share, compared to $47.46 million, or 53 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned $1.38 per share in the fourth quarter. Revenue climbed 23 percent to $1.149 billion from $935.99 million. Analysts, on average, expected the company to report earnings of $1.32 per share on revenue of $1.14 billion.

The company has cut prices to lure shoppers and increase market share in highly competitive apparel market. The company has benefited from aggressive promotions. 

The teen retailer's biggest strengths recently have been in direct-to-consumer sales - chiefly online - and international sales. However, few analysts fear that higher-than-usual discounting coupled with aggressive promotions could put pressure on margin.

The teen retailer registered robust comparable store sales growth during the first quarter. Early in May, the company reported net sales of $836.7 million for the fiscal quarter ended April 30, 2011, a 22% increase from net sales of $687.8 million for the fiscal quarter ended May 1, 2010. U.S. sales, including direct-to-consumer sales, increased 13% to $641.0 million. International sales, including direct-to-consumer sales, increased 64% to $195.7 million. Total Company direct-to-consumer sales, including shipping and handling, increased 32% to $105.8 million. Total comparable store sales for the quarter increased 10%. By brand, comparable store sales increased 8% for Abercrombie & Fitch, increased 11% for abercrombie kids, and increased 11% for Hollister Co. Within the quarter, April was very strong, including the effect of the calendar shift of the Easter holiday.

Abercrombie & Fitch plans to grow earnings to $4.75 per share in fiscal 2012 (ends January 2013). Abercrombie & Fitch also expects to reach sales in fiscal 2015 of $7.5 billion. Abercrombie & Fitch is counting on better growth opportunities overseas, and will invest in increasing the number of International Flagship stores and Hollister locations in Asia and Europe. Abercrombie & Fitch currently has five International Flagship stores open, including two in Asia and three in Europe. During the current fiscal year, the company plans to double this store base, with locations in Paris, Madrid and several other select cities. Abercrombie & Fitch plans some aggressive expansion here over the next few years with a long-term goal of approximately 30 stores. Another area of growth for Abercrombie & Fitch is in its Hollister brand in Europe. The company currently has 29 stores in four countries and has a long-term goal of increasing its store count to 185 across 15 countries. 

However, Abercrombie & Fitch is planning to shrink its store base in the United States and will close 50 locations during the current fiscal year. The company will also work to increase its U.S. store productivity with a goal of 90% of 2007 levels by 2012.

Full Disclosure: None.

Abercrombie & Fitch Co. (NYSE: ANF): Q4 Earnings Preview 2010

Abercrombie & Fitch Co. (NYSE: ANF) is scheduled to release fourth-quarter earnings before the opening bell on Wednesday, February 16, 2011. Analysts, on average, expect the company to report earnings of $1.32 per share on revenue of $1.14 billion. In the year ago quarter, the company reported earnings of 91 cents per share on revenue of $935.99 million.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch Co. (A&F) through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations. At the end of fiscal 2010, the company operated a total of 1,069 stores. The Company operated 316 Abercrombie & Fitch stores, 181 abercrombie kids stores, 502 Hollister Co. stores and 18 Gilly Hicks stores in the United States. The Company also operated nine Abercrombie & Fitch stores, four abercrombie kids stores, 38 Hollister Co. stores and one Gilly Hicks store internationally. 

In the preceding third-quarter, the New Albany, Ohio-based company's net income was $50 million, or 56 cents a share, compared to $38.8 million, or 44 cents a share, in the year-earlier quarter. Revenue climbed 18% to $885.8 million from $753.7 million. Analysts, on average, expected the company to report earnings of 51 cents per share on revenue of $881.26 million.

The company has cut prices to lure shoppers and increase market share in highly competitive apparel market. The company has benefited from aggressive promotions. However, few analysts fear that higher-than-usual discounting coupled with aggressive promotions could put pressure on margin.

The teen retailer registered robust comparable store sales growth during the third quarter. Comparable store sales increased 13% for the quarter. For the fiscal quarter ended January 29, 2011, the Company reported net sales of $1.149 billion, a 23% increase from net sales of $936.0 million last year.  

The teen retailer's biggest strengths recently have been in direct-to-consumer sales - chiefly online - and international sales. For the fourth quarter, total company direct-to-consumer net merchandise sales increased 43% to $133.4 million. For the quarter, total Company international net sales, including direct-to-consumer net sales, increased 61% to $230.3 million.

As a result of its fiscal year-end review of long-lived store-related assets, the company expects to record an impairment charge for the quarter. The charge will include a substantial portion of the approximately $58 million net book value associated with Gilly Hicks stores, as well as certain other store-related assets. The Gilly Hicks charge relates to the stores constructed using the original large format store of around 10,000 gross square feet. The Company expects that future stores will be constructed using the new smaller format of approximately 5,000 gross square feet. In addition, for the fiscal quarter ended January 29, 2011 the company expects to record exit charges associated with the closure of 56 domestic stores during the quarter. These closures are in addition to the 8 permanent closures that occurred in prior quarters during the fiscal year. Fourth quarter net pre-tax charges associated with these closures are expected to be approximately $4 million, primarily related to lease obligations.

Full Disclosure: None.

Abercrombie & Fitch Co. (NYSE: ANF): Q2 Earnings Preview 2010

Abercrombie & Fitch Co. (NYSE: ANF) is scheduled to release second-quarter earnings before the opening bell on Tuesday, August 17, 2010. Analysts, on average, expect the company to report earnings of 16 cents per share on revenue of $727.68 million. In the year ago quarter, the company posted a loss of 9 cents per share on revenue of $637.26 million.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch Co. (A&F) through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. As of July 31, 2010, the company operated a total of 1,098 stores. The Company operated 339 Abercrombie & Fitch stores, 202 abercrombie kids stores, 509 Hollister Co. stores and 17 Gilly Hicks stores in the United States. The Company also operated six Abercrombie & Fitch stores, four abercrombie kids’ stores and 21 Hollister Co. stores internationally.

Abercrombie's earnings have met or topped analysts' estimates in the past three quarters. In the preceding first quarter, the New Albany, Ohio-based company posted narrower loss of $11.83 million, or 13 cents per share, compared to a loss of $59.24 million, or 68 cents per share, in the year-ago period. Revenue rose 14% to $687.8 million from $601.73 million in the same quarter last year. Analysts, on average, expected the company to report a loss of 14 cents per share on revenue of $678.6 million.

The company has cut prices to lure shoppers and increase market share in highly competitive apparel market. The company has also benefited from aggressive promotions. However, few analysts fear that higher-than-usual discounting coupled with aggressive promotions could put pressure on margin.

The teen retailer registered robust comparable store sales growth during the second quarter. For the quarter ended July 31, 2010, comparable store sales increased 5%. Net sales were $745.8 million, compared to $637.2 million last year. In the month of July, Abercrombie & Fitch had a 7 percent increase in same store sales, beating the 4.1 percent estimate. For the Year-to-date, comparable store sales are up 3% while net sales rose to $1.434 billion from $1.239 billion last year.

The teen retailer's biggest strengths recently have been in direct-to-consumer sales - chiefly online - and international sales. Direct-to-consumer sales rose 51 percent in July, and international sales were up 81 percent.

The company is expanding rapidly in international markets. During fiscal 2010, Abercrombie expects to open flagship stores in Copenhagen, Denmark and Fukuoka, Japan, and a Hollister Epic store on Fifth Avenue in New York. In addition, the company also expects to open approximately 25 international mall-based Hollister stores and one Abercrombie & Fitch store in Canada.

Domestically, it expects to open three A&F stores, two kid’s stores, three Hollister stores and two Gilly Hicks stores.

In terms of stock performance, shares of the company have gained nearly 6.4% since the beginning of the year.

Full Disclosure: None.