Abercrombie & Fitch Co. ANF reported robust third-quarter fiscal 2017, wherein both its earnings and sales beat the Zacks Consensus Estimate and improved year over year. Notably, this was the company’s second straight positive earnings surprise and the third consecutive sales beat.
Results gained from significant progress on its strategic initiatives and strength in Hollister as well as direct-to-customer business, amid a highly promotional retail backdrop.
Consequently, shares of this Zacks Rank #3 (Hold) stock surged 25.5% in the pre-market trading hours. Additionally, the company’s initiatives like strategic capital investments, cost saving efforts, loyalty and marketing programs have aided Abercrombie to outperform the industry in the last three months. The stock gained 29.9% compared with the industry’s growth of 14.1%.
Q3 Synopsis
The company posted third-quarter adjusted earnings of 30 cents per share outpacing the Zacks Consensus Estimate of 24 cents. Also, the bottom line increased substantially from 2 cents earned in the year-ago quarter. Currency tailwinds, net of hedging, were roughly 1 cent per share in the quarter.
Net sales of $859.1 million surpassed the Zacks Consensus Estimate of $820 million and grew 5% year over year. The upside was driven by comparable sales (comps) growth of 4% as well as currency tailwinds impacting sales by 1%.
Abercrombie & Fitch Company Price, Consensus and EPS Surprise
Abercrombie & Fitch Company Price, Consensus and EPS Surprise | Abercrombie & Fitch Company Quote
