Young adult apparel retailer Abercrombie & Fitch (NYSE:ANF) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Abercrombie and Fitch beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $1.13 billion, up 21.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ profit and earnings estimates.
Is Abercrombie and Fitch a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Abercrombie and Fitch’s revenue to grow 11.4% year on year to $1.18 billion, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Abercrombie and Fitch has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5% on average.
Looking at Abercrombie and Fitch’s peers in the apparel and footwear retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.6%, and Boot Barn reported revenues up 13.7%, in line with consensus estimates. Gap traded up 12.7% following the results while Boot Barn was down 19.9%.
Read our full analysis of Gap’s results here and Boot Barn’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 4.1% on average over the last month. Abercrombie and Fitch is up 10.3% during the same time and is heading into earnings with an average analyst price target of $186 (compared to the current share price of $152.10).
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