Abercrombie & Fitch Earnings Beat Has ANF Stock Soaring

by Christopher Freeburn | February 26, 2014 9:47 am

Abercrombie & Fitch Earnings Beat Has ANF Stock Soaring

Abercrombie and Fitch 300x199 Abercrombie & Fitch Earnings Beat Has ANF Stock Soaring[1]On Wednesday, apparel retailer Abercrombie & Fitch (ANF[2]) topped Wall Street estimates despite a sharply lower quarterly profit[3], sending ANF stock up almost 6% in morning trading.

Abercrombie & Fitch said it earned $66.1 million during the fourth quarter, a drop of 58% from $157.2 million during the year-ago period. Adjusted EPS came in at $1.34 a share, easily exceeding the adjusted earnings of $1.03 a share that analysts had forecast, the Wall Street Journal notes.

During the quarter, Abercrombie & Fitch reported sales of $1.3 billion, down 12% from the prior-year quarter. Same store sales dropped 8% during the quarter.

Abercrombie & Fitch said the implementation of its cost-savings program would result in cost reductions of at least $175 million during the current fiscal year.

The retailer also authorized a $150 million share buyback that will occur during the first quarter.

ANF stock closed at $35.99 on Tuesday. Abercrombie & Fitch stock has sunk about 20% over the past year due to disappointing sales and a loss of popularity among young consumers[4].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Abercrombie-and-Fitch.jpg
  2. ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
  3. despite a sharply lower quarterly profit: http://online.wsj.com/news/articles/SB10001424052702304709904579406792069595358
  4. loss of popularity among young consumers: http://investorplace.com/2014/02/hey-abercrombie-fitch-90s-called/#.Uw38unlhOf0

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