Abercrombie Spikes on Big Earnings Beat

By Trey Thoelcke Published Nov 14, 7:29AM EST

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Shares of Abercrombie & Fitch Co. (NYSE: ANF) surged this morning on much better-than-expected earnings results for the fiscal third quarter.

The specialty retailer of casual apparel posted adjusted earnings per share (EPS) of $0.87 on revenues of $1.17 billion for the quarter. In the same period a year ago, it reported a profit of $0.57 per share on revenue of $1.08 billion. This quarter’s results also compare with the Thomson Reuters estimates for adjusted EPS of $0.59 and $1.11 billion in revenues.

Total U.S. sales were essentially flat at $818.6 million, but total international sales increased 37% to $351.1 million. Total same-store sales for the quarter decreased 3% relative to last year.

Chairman and Chief Executive Officer Mike Jeffries said:

These significantly improved financial results reflect progress on several fronts over the past quarter. Our US chain store business posted healthy growth on top of a strong quarter a year ago, and we saw sequential trend improvement in our international business.

The company said it bought back 3.0 million shares during the third quarter. In addition, the Board of Directors declared a quarterly cash dividend of $0.175 per share.

Abercrombie now expects full-year EPS to fall in a range of $2.85 to $3.00, assuming a mid single digit percentage decrease in same-store sales for the fourth quarter. The Thomson Reuters forecast calls for $2.48 per share earnings on revenue of $4.39 billion for the full fiscal year.

Shares jumped about 25% in premarket trading to $38.99. The 52-week range is $28.64 to $54.10. Before this morning’s report, the mean price target was $37.76.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.