Latest news with #AbercrombieFitch
Yahoo
8 hours ago
- Business
- Yahoo
Jim Cramer and Wall Street Are Watching Abercrombie & Fitch Co. (ANF)
We recently published a list of . In this article, we are going to take a look at where Abercrombie & Fitch Co. (NYSE:ANF) stands against other stocks on Jim Cramer and Wall Street's radar. When a caller inquired about Abercrombie & Fitch Co. (NYSE:ANF) on April 29, Mad Money's host replied: 'You know what, I've got to see what they look like in a tariffed world… because I don't know exactly how much of their stuff is going to have to go up in price. The stock is reflecting a lot of that, but you're right, it's six times earnings. But you and I both know six times earnings means usually that the earnings are too high. But it's 65 bucks, $3.3 billion company. I think you can pick up a little, but then wait.' A close-up of a customer trying on a piece of apparel in the retailer's spacious dressing room, emphasizing the company's focus on personal care and experience. Abercrombie & Fitch Co. (NYSE:ANF) is a retailer that provides clothing, accessories, and personal care products for all ages through multiple brands and sales channels, including stores and online platforms. On May 29, Raymond James analyst Rick Patel increased the price target on Abercrombie & Fitch (NYSE:ANF) to $99 from $90 and maintained an Outperform rating on the stock. The firm noted that while the Abercrombie & Fitch brand sales and gross margin fell short, the company exceeded expectations on EPS, revenue, and SG&A management and considers the fiscal 2025 guidance attainable. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
3 days ago
- Business
- Forbes
A&F Stock: Earnings Soar, But Why The Slump?
NEW YORK, NEW YORK - APRIL 09: A Abercrombie & Fitch store is seen on April 09, 2025 in New York ... More City. U.S. President Donald Trump has announced that he will pause tariffs for 90 days on most nations but will raise the tax rate on Chinese imports to 125%. (Photo by Michael M. Santiago/Getty Images) Abercrombie & Fitch's (NYSE: ANF) Q1 results surpassed expectations on May 28, resulting in a 15% increase in shares. After the market opened on May 29, the stock retreated to $83, remaining 44% below its year-to-date peak and lagging behind the S&P 500's 0.6% increase. This discrepancy underscores the company's robust operational performance amid macroeconomic challenges, tempered by investor apprehension regarding adjusted margin and earnings projections for FY 2025. In the last three years, ANF stock has more than doubled—from approximately $35 in early 2022 to almost $85 today—driven by a 155% increase in earnings per share, from $4.20 in 2021 to $10.69 in 2024. This momentum continued into Q1 FY25, where the company achieved EPS of $1.59 on $1.10 billion in revenue, exceeding expectations of $1.39 and $1.07 billion, respectively. Although earnings growth has been remarkable, valuation multiples present a more conservative picture: the trailing P/E ratio rose to 11x in 2024 but has since decreased to 8x, despite improved fundamentals—reflecting investor concerns regarding sustainability and external risks. The resurgence of the company's namesake brand hasn't happened by chance. The company has redesigned its stores, broadened its market appeal, and focused on digital and global expansion. Sales of the Abercrombie brand grew at an 18% CAGR from 2021 to 2024, outpacing the company's overall growth of 10%. Hollister reported an 8% CAGR, boosted by Gen Z enthusiasm and a more robust women's collection. Operating margins sharply increased from 9.2% to 15.0%, while a 15% decrease in shares outstanding contributed to a dramatic 155% jump in EPS, significantly outpacing revenue growth. See Abercrombie & Fitch's Revenue. Nevertheless, Q1 results presented a mixed scenario: Abercrombie brand sales fell 4%, with comparable sales down 10% due to reduced pricing and challenging year-ago comparisons. Conversely, Hollister achieved its eighth consecutive quarter of growth—sales increased by 22% with comps up 23%. The operating margin settled at 9.3%, lower than last year's 12.7% but above expectations. Inventory value rose by 21%, positioning the company for a stronger second half. The full-year guidance has been adjusted, with EPS now forecasted to be between $9.50 and $10.50 (down from $10.40 to $11.40), and operating margins revised to 12.5%–13.5% (from 14%–15%). The primary factor: $50 million in tariff expenses expected to reduce margins by 100 basis points. With no plans for broad price hikes and a flat outlook for average unit retail this year, ANF anticipates 3%–6% net sales growth in 2025, with increases expected across all regions. Management is enhancing shareholder returns through a $1.3 billion stock buyback program, having repurchased $200 million in Q1 with $1.1 billion remaining authorized. The fluctuations in ANF's stock have been significant: +71% in 2021, -34% in 2022, +285% in 2023, and +69% in 2024. The notable decline in 2025 suggests investor skepticism amid macroeconomic risks and tariff challenges. Nonetheless, with a P/E of just 8x—well below the four-year average of 14x—and robust earnings potential, the stock may present considerable upside if management effectively addresses the headwinds. See our analysis on Abercrombie & Fitch's Valuation for additional insights on what is influencing our price estimate for the stock. Note: Investing in a single stock entails risks. Conversely, the Trefis High Quality (HQ) Portfolio, which includes a selection of 30 stocks, has a history of consistently outperforming the S&P 500 over the past four years. Why is that? Collectively, HQ Portfolio stocks delivered superior returns with reduced risk compared to the benchmark index, showcasing a smoother investment experience as evident in HQ Portfolio performance metrics. It is also important to understand that stocks can plummet sharply – 20%, 30%, even 50% –as we've observed during previous market disruptions. No stock is exempt. Our dashboard How Low Can Stocks Go During A Market Crash shows how key stocks performed during and after the last six market crashes.
Reuters
3 days ago
- Business
- Reuters
American Eagle Outfitters reports bigger-than-expected loss, forecasts downbeat revenue
May 29 (Reuters) - American Eagle Outfitters (AEO.N), opens new tab forecast second-quarter revenue below estimates after reporting a wider-than-expected quarterly loss on Thursday, due to rising input costs and sluggish demand. Shares of the company, which withdrew its fiscal 2025 forecasts earlier this month amid tariff uncertainty, fell about 8% after the bell. Consumers grappling with financial constraints are avoiding non-essential purchases, including apparel and accessories, which in turn has hurt demand for clothing brands such as American Eagle Outfitters. Comparable sales in the company's American Eagle brand declined 2%, while those for its Aerie brand dropped 4%, compared to a year ago. Meanwhile, fears of a surge in product prices, sparked by U.S. President Trump's unpredictable tariff shifts, have rattled businesses and consumers worldwide. Peer Abercrombie & Fitch, however, reported an upbeat quarter, driven by robust demand for its Hollister brand among younger shoppers. American Eagle Outfitters now expects second-quarter revenue to decline by 5%, compared with analysts' estimates of a 4.04% drop, according to data compiled by LSEG. Total inventory as of the quarter ended May 3 fell 5% to $645 million, with unit numbers also down 5%. The owner of the Aerie brand, which took a $75 million inventory charge on its spring and summer collection, saw further margin pressure from increased in-season discounts and advertising expenses. Its quarterly gross margin dropped to 29.6% from 40.6% a year ago. The company reported a quarterly adjusted loss of 29 cents per share, versus analysts' estimates of a loss of 22 cents per share. Its quarterly net revenue declined 4.7% to $1.09 billion, from a year ago. Analysts estimated a drop of 4.34% to $1.09 billion.
Bloomberg
5 days ago
- Business
- Bloomberg
Abercrombie Surges on Raised Outlook After Tallying Tariff Cost
Abercrombie & Fitch Co. shares rose sharply in premarket trading Wednesday after the retailer upped its full-year outlook, suggesting the retailer is confident in its ability to navigate the changing tariff landscape. The fashion retailer now sees full year net sales growth of 3% to 6% up from its estimate of 3% to 5% in March. This included approximately $50 million of tariff expenses.
Associated Press
5 days ago
- Business
- Associated Press
Abercrombie & Fitch Co. Reports First Quarter Fiscal 2025 Results
NEW ALBANY, Ohio, May 28, 2025 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the first quarter ended May 3, 2025. These compare to results for the first quarter ended May 4, 2024. Descriptions of the use of non-GAAP financial measures and reconciliations of GAAP and non-GAAP financial measures accompany this release. Fran Horowitz, Chief Executive Officer, said, 'We delivered record first quarter net sales with 8% growth to last year. This was above our expectations and was supported by broad-based growth across our three regions. Hollister brands led the performance with growth of 22%, achieving its best ever first quarter net sales, while Abercrombie brands net sales were down 4% against 31% sales growth in 2024. We exceeded our expectations on the bottom line as well, with operating margin of 9.3% and earnings per share of $1.59. We also returned excess cash to shareholders through share repurchases totaling $200 million in the quarter, marking our fifth consecutive quarter of share repurchases. As we navigate the current environment, we have the team and proven capabilities in place to read, react and adapt, while continuing to deliver for customers globally. Importantly, with a strong foundation, we remain on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success.' Details related to reported net income per diluted share and adjusted net income per diluted share for the first quarter are as follows: (1) The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate. A summary of results for the first quarter ended May 3, 2025 as compared to the first quarter ended May 4, 2024: Net sales by segment and brand for the first quarter are as follows: (1) Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. (2) Comparable sales are calculated on a constant currency basis. Refer to 'REPORTING AND USE OF GAAP AND NON-GAAP MEASURES,' for further discussion. (3) The Americas segment includes the results of operations in North America and South America. (4) The EMEA segment includes the results of operations in Europe, the Middle East and Africa. (5) The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. As of May 3, 2025 the company had: Details related to the company's cash flows for the year-to-date period ended May 3, 2025 are as follows: During the first quarter of 2025, the company repurchased 2.6 million shares for approximately $200 million, representing a 5% reduction in shares outstanding prior to the vesting impact of stock compensation. The company has $1.1 billion remaining on the share repurchase authorization established in March 2025. Depreciation and amortization was $39 million for the year-to-date period ended May 3, 2025. (1) Includes the estimated impact from the tariffs on goods imported into the United States in accordance with trade policies currently in effect. This includes a 30% tariff on imports from China, and a 10% tariff on all other global imports, but excludes other currently-paused tariffs and any other potential future trade policy changes imposed by the United States or other countries. Net of planned mitigation efforts, the full year outlook assumes approximately $50 million of tariff expense, or 100 basis points as a percent of net sales. (2) Released March 5, 2025. (3) The current outlook for effective tax rate is sensitive to the jurisdictional mix and level of income and does not include the impact of potential future tax policy or legislative changes. (4) The current outlook for net income per diluted share and diluted weighted average shares includes the anticipated impact to shares outstanding from potential share repurchase activity in fiscal 2025. (5) The timing and amount of any such repurchases will be determined based on an evaluation of market conditions, the company's share price, legal requirements, and other factors. Today at 8:30 a.m. ET, the company will conduct a conference call and provide additional details around its quarterly results and its outlook for the second quarter. To access the call by phone, participants will need to register at the following URL address to obtain a dial-in number and passcode: A presentation of first quarter results will be available in the 'Investors' section at at approximately 7:30 a.m. ET, today. Important information may be disseminated initially or exclusively via the website; investors should consult the site to access this information. This Press Release and related statements by management or spokespeople of Abercrombie & Fitch Co. (A&F) contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including, without limitation, statements regarding our second quarter and annual fiscal 2025 results, relate to our current assumptions, projections and expectations about our business and future events. Any such forward-looking statements involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company's control. The inclusion of such information should not be regarded as a representation by the company, or any other person, that the objectives of the company will be achieved. Words such as 'estimate,' 'project,' 'plan,' 'goal,' 'believe,' 'expect,' 'anticipate,' 'intend,' 'should,' 'are confident,' 'will,' 'could,' 'outlook,' and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements, including any financial targets, estimates, or performance outlooks whether as a result of new information, future events, or otherwise. Factors that may cause results to differ from those expressed in our forward-looking statements include, but are not limited to, the factors disclosed in Part I, Item 1A. 'Risk Factors' of the company's Annual Report on Form 10-K for the fiscal year ended February 1, 2025, and in our subsequent reports and filings with the Securities and Exchange Commission, as well as the following factors: risks related to global trade policy, including the impact of the imposition or threat of imposition of new or increased tariffs by the United States or foreign governments, other changes to and continued uncertainties relating to trade policies and arrangements, or a global trade war; risks related to changes in global economic and financial conditions, including inflation, and the resulting impact on consumer spending and our operating results, financial condition, and expense management; risks related to global operations, including changes in the economic or political conditions where we sell or source our products; risks related to the geopolitical landscape and ongoing armed conflicts, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience and the impact of such conflicts or events on international trade, supplier delivery or increased freight costs; risks related to natural disasters and other unforeseen catastrophic events; risks related to our failure to engage our customers, anticipate customer demand, expectations, and changing fashion trends, and manage our inventory and product delivery; risks related to our failure to operate effectively in a highly competitive and constantly evolving industry; risks related to our ability to successfully invest in and execute on our customer, digital and omnichannel initiatives; risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in our tax obligations and effective tax rate, including as a result of earnings and losses generated from our global operations, may result in volatility in our results of operations; risks and uncertainty related to adverse public health developments; risks associated with climate change and other corporate responsibility issues; risks related to reputational harm to the company, its officers, and directors; risks related to actual or threatened litigation; risks related to cybersecurity threats and privacy or data security breaches, and the potential loss or disruption to our information systems, and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing laws and regulations. This document includes certain adjusted non-GAAP financial measures where management believes it to be helpful in understanding the company's results of operations or financial position. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures can be found in the 'Reporting and Use of GAAP and Non-GAAP Measures' section. Sub-totals and totals may not foot due to rounding. Net income and net income per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests. As used in this document, references to 'Americas' includes North America and South America, 'EMEA' includes Europe, the Middle East and Africa and 'APAC' includes the Asia-Pacific region, including Asia and Oceania. Abercrombie & Fitch Co. (NYSE: ANF) is a global, digitally led, omnichannel specialty retailer of apparel and accessories catering to kids through millennials with assortments curated for their specific lifestyle needs. The company operates a family of brands, including Abercrombie brands and Hollister brands, each sharing a commitment to offer products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are. Abercrombie & Fitch Co. operates approximately 790 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites and Reporting and Use of GAAP and Non-GAAP Measures The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company's operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, such as asset impairment charges, therefore supplementing investors' understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company's performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplemental to, and not as an alternative to, the company's GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies. The company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation. The company also provides certain financial information on a constant currency basis to enhance investors' understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate. In addition, the company provides EBITDA as a supplemental measure used by the company's executive management to assess the company's performance. We also believe these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment. (1)'GAAP' refers to accounting principles generally accepted in the United States of America. (2)The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate. (3) The estimated basis point change has been rounded based on the percentage change. (1) EBITDA is a supplemental financial measure that is not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. (2)
