Earnings To Watch: Abercrombie and Fitch (ANF) Reports Q3 Results Tomorrow

Adam Hejl /
2023/11/20 2:02 am EST

Young adult apparel retailer Abercrombie & Fitch (NYSE:ANF) will be announcing earnings results tomorrow before market open. Here's what to look for.

Last quarter Abercrombie and Fitch reported revenues of $935.3 million, up 16.2% year on year, beating analyst revenue expectations by 10.8%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue and EPS expectations, driven by impressive sales growth at Abercrombie brands and a huge operating margin increase. On top of that, the company raised its full-year revenue guidance from 3% growth all the way up to 10% while changing its operating margin estimate from 5.5% to 8.5%.

Is Abercrombie and Fitch buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Abercrombie and Fitch's revenue to grow 11.6% year on year to $982.4 million, improving on the 2.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.

Abercrombie and Fitch Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Abercrombie and Fitch's peers in the apparel and footwear retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Gap's revenues decreased 6.7% year on year, beating analyst estimates by 4.4% and Children's Place reported revenue decline of 5.7% year on year, exceeding estimates by 3.4%. Gap traded up 8% on the results, Children's Place was down 11.7%.

Read our full analysis of Gap's results here and Children's Place's results here.

There has been positive sentiment among investors in the apparel and footwear retail segment, with the stocks up on average 8% over the last month. Abercrombie and Fitch is up 22.6% during the same time, and is heading into the earnings with analyst price target of $69.0, compared to share price of $73.5.

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The author has no position in any of the stocks mentioned.