Abercrombie & Fitch (ANF) Stock | Beating Expectations


Abercrombie & Fitch Co. (NYSE: ANF)

Abercrombie & Fitch Co, a retail apparel company, today announced fiscal second quarter results that beat analysts’ estimates.


Abercrombie & Fitch Co. Earnings and Outlook

Reports Q2 (Jul) earnings of $0.12 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of ($0.05).  GAAP net loss of $0.8 million and net loss per diluted share of $0.01 for the thirteen weeks ended August 1, 2015, compared to GAAP net income of $12.9 million and net income per diluted share of $0.17 for the thirteen weeks ended August 2, 2014. Adjusted non-GAAP net income of $8.6 million and net income per diluted share of $0.12 for the second quarter, compared to adjusted non-GAAP net income of $14.1 million and net income per diluted share of $0.19 for the second quarter last year.


Abercrombie & Fitch Co. Executive Chairman’s Comments

Arthur Martinez, Executive Chairman, said:

“In our second quarter, we delivered a meaningful sequential improvement in comparable sales, stabilized gross margins and achieved significant expense reductions.  Our results exceeded what we signaled in our first quarter earnings call and give us confidence that we are on the right track, although we recognize that we still have much to achieve.

We continue to take steps to revitalize our performance, maintaining an intense focus on improving the customer experience.  We made good progress in Hollister and abercrombie kids, but more modest progress at Abercrombie & Fitch.  To accelerate our efforts, we have reinvigorated Abercrombie & Fitch`s brand design and merchandising teams, recruiting a number of talented executives with expertise relevant to our needs.

We understand the challenges ahead. We are taking the steps necessary to deliver continued improvement in our performance and to establish very clear brand positions that will guide all elements of our business and provide the foundation for long-term profitability and growth.”   Globe Newswire


ANF Technical Analysis


ANF gapped up in price today to $19.73 up from yesterday’s close of $17.27 which is a 14% increase in price based on favorable earnings results. Taking a look at the daily chart we can see the last time the stock traded at this price level was on Aug 12 when it traded at $19.77. The stock has been on a steady decline the whole year coming down all the way from its 52 week high of $45.50. Recently on July 31 when it traded at 20.09 and Aug 10 when it traded at $20.31 it tried to rebound but could not hold the $20.00 price level. At the $20 level there seems to be a little resistance. With today’s favorable news it will be interesting to see if the stock can break through $20.00 and  use that as a support level going forward. Today’s pre market highs reached $20.50 and it opened at $19.73 so it did give back $0.77 or 4% at the open. For trading purposes my entry point would be $20.00 looking for a pop through the whole number with a possible add on at the pre market highs of $20.50. My stop loss would be the gap up price of $19.73 fearing if we fall below that level the stock will start to fill in the gap up.


Company Profile

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of apparel for men, women, and kids. The company operates through three segments: U.S. Stores, International Stores, and Direct-to-Consumer. It sells various products, such as casual sportswear apparel comprising knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brand names. The company also offers bras, underwear, personal care products, sleepwear, and at-home products for girls under the Gilly Hicks brand. As of January 31, 2015, it operated through 799 stores in the United States and Puerto Rico; and 170 stores in Canada, Europe, Asia, Australia, and the Middle East. The company sells its products through its stores and direct-to-consumer sales. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.  Yahoo Finance