Teen clothing retailer Abercrombie & Fitch Co. (
) on Wednesday posted much better-than-expected third quarter
earnings and lifted its full-year outlook.
All of the sales growth came from overseas, however, and ANF's
same-store sales actually fell from last year.
The New Albany, OH-based company reported third quarter net
income of $71.5 million, or 87 cents per share, compared with $50.9
million , or 57 cents per share, in the year-ago period.
Revenue rose 8.7% from last year to $1.17 billion.
On average, Wall Street analysts expected a much smaller profit
of 59 cents per share, on lower revenue of $1.11 billion.
On a sour note, ANF said its same-store sales across all its
brands fell 3% in the period. Same-store sales, also known as
comparable sales, are an important metric used to gauge a
retailer's performance, since they only take into account sales
from stores open at least one year. The company didn't provide any
detail regarding how same-store sales declined yet its profit and
revenue rose so significantly.
Looking ahead, ANF raised its full-year earnings outlook to a
range of $2.85 to $3.00 per share, up from a prior estimate of
$2.50 to $2.75.
Abercrombie shares rose $9.42, or +30%, in premarket trading
The Bottom Line
Shares of Abercrombie & Fitch (
) have a 2.25% dividend yield, based on last night's closing stock
price of $31.18. The stock has technical support in the $27-$29
price area. If the shares can firm up, we see overhead resistance
around the $35-$39 price levels.
Abercrombie & Fitch Co. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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