Abercrombie & Fitch (NYSE:ANF) earnings for the clothing retailer’s second quarter of 2020 have ANF stock soaring higher on Thursday. That’s due to its adjusted earnings per share of 23 cents beating out Wall Street’s adjusted losses per share estimate of 83 cents. Its revenue of $698.33 million also comes in higher than analysts’ estimate of $658.44 million.
Here’s what else is worth mentioning from the most recent Abercrombie & Fitch earnings report.
- Adjusted per-share earnings are a major increase over its adjusted per-share losses of 48 cents from the same time last year.
- Revenue for the quarter is sitting 17% lower than the $841.08 million reported in Q2 2019.
- Operating income of $14.14 million is a positive change year-over-year from an operating loss of $39.48 million.
- The Abercrombie & Fitch earnings report also has net income coming in at $5.79 million.
- That’s a massive jump from the company’s net loss of $29.52 million in the same period of the year prior.
Fran Horowitz, CEO of Abercrombie & Fitch, said this about the earnings.
“We ended the quarter with approximately $1.1 billion of liquidity, reflecting $187 million of operating cash flow generated in the second quarter. By managing to the tough current environment and our daily demand trends, we were able to grow our highly penetrated digital revenue base by 56% year-over-year to $386 million, expand our gross profit rate by 140 basis points and leverage operating expense, resulting in robust operating margin improvement.”
Abercrombie & Fitch provides guidance for the third quarter of 2020 in its earnings report. The company says it expects revenue to decline by 15% to 20% as compared to Q3 2019.
ANF was up 7.8% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.