Abercrombie & Fitch Shares Rise on Q2 Profit

by Christopher Freeburn | August 15, 2012 11:50 am

Abercrombie & Fitch Shares Rise on Q2 Profit

Shares of Abercrombie & Fitch (NYSE:ANF[1]) jumped in Wednesday trading after the company announced second-quarter earnings[2] that exceeded its own previously lowered forecast.

The clothing chain announced income of $15.5 million during the quarter, down more than 50% from $32 million in the same period last year.

Sales increased to $951.4 million, up 4% from 2011.

EPS for the quarter was 19 cents, down from 35 cents last year, but beating the high end of the diminished forecast it issued two weeks ago by a penny.

Investors liked the news. Abercrombie & Fitch shares rose about 10%.

The company said that same-store sales fell 11% at its main stores, and 10% at its children’s outlets. Sales were also off 10% at its Hollister stores.

Company officials maintained their earlier, already reduced, profit outlook for the year. They predict earnings of between $2.50 and $2.75 a share for 2012. The company also warned that same-store sales would decline 10% during the remainder of the year.

Analysts say teen shoppers have turned to clothing rivals like Gap (NYSE:GPS[3]), American Eagle Outfitters (NYSE:AEO[4]) and Aeropostale (NYSE:ARO[5]), hurting Abercrombie sales.

Endnotes:
  1. ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
  2. announced second-quarter earnings: http://in.reuters.com/article/2012/08/15/us-abercrombiefitch-results-idINBRE87E0G920120815
  3. GPS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPS
  4. AEO: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEO
  5. ARO: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARO

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