Abercrombie & Fitch Beats on EPS, but GAAP Results Lag

Abercrombie & Fitch (NYS: ANF) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Abercrombie & Fitch missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Abercrombie & Fitch logged revenue of $921.2 million. The 28 analysts polled by S&P Capital IQ anticipated net sales of $953 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $836.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.03 for Q1 were 89% lower than the prior-year quarter's $0.28 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.6%, 240 basis points worse than the prior-year quarter. Operating margin was 0.7%, 400 basis points worse than the prior-year quarter. Net margin was 0.3%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $4.62 billion. The average EPS estimate is $3.48.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 807 members rating the stock outperform and 328 members rating it underperform. Among 305 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 give Abercrombie & Fitch a green thumbs-up, and 74 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abercrombie & Fitch is outperform, with an average price target of $54.98.

If you're invested in retailers like Abercrombie & Fitch, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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