Despite having a rough few months along with similar teen apparel companies, Abercrombie & Fitch (NYSE:$ANF) released an earnings report on Thursday, August 24th, that exceeded average analysts’ expectations. Abercrombie cited its success from its second quarter – which ended on July 29th – to the strong sales from its Hollister brand. Additionally, Abercrombie said that it also benefited from having a more diverse selection of products for its consumers.
For its second quarter, the company reported a loss of $0.23 per share – less than the average expectation of a loss of $0.34 according to analysts from Zacks. Revenue for the quarter was $779.3 million, also beating Zacks’ analysts’ average expectation of $761.6 million. It also beat the S&P Global Market Intelligence expectations of $759 million. Net loss was $15 million, better than the average expected loss of $28 million.
Earlier this year, Abercrombie had ended its search for potential buyers, saying that they wanted to attempt to work past its struggles on its own. No doubt this quarter’s result is a positive re-enforcement for both management and investors of the company. Abercrombie’s stock closed on Thursday, August 24th, after a 17.07% rise.
“We are encouraged by the clear progress across all brands,” CEO of Abercrombie Fran Horowitz stated. The company is expecting same-store sales to either stay flat or grow a little in the next quarter. Additionally, although Abercrombie is seeing some progress, the company cautioned investors that sales will stay promotional – meaning that the bottom line of the next quarter could be weakened.
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