Back to top

Image: Bigstock

Abercrombie & Fitch Co.

Read MoreHide Full Article

Abercrombie has been substantially underperforming the broader sector in the past one year due to negative earnings and sales surprises in recent quarters. This was evident from the company’s dismal fourth-quarter fiscal 2016 earnings and sales, which lagged expectations and declined year over year. The softness can be attributed to the tough retail environment due to heightened promotions in the holiday season and persistence of currency headwinds. However, results gained from the solid performance of Hollister brand, renewed strength in the Abercrombie brand and robust direct-to-customer sales. Backed by these positives, the company provided upbeat comps growth guidance for fiscal 2017. Nonetheless, it anticipates comps to remain challenging in first-half fiscal 2017. Further, a tough retail backdrop and currency headwinds are expected to persist and hurt results in fiscal 2017. These factors led to a downtrend in the estimates.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Abercrombie & Fitch Company (ANF) - free report >>

Published in