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Abercrombie (ANF) Surges 7.8%: Is This an Indication of Further Gains?
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Abercrombie & Fitch (ANF - Free Report) shares ended the last trading session 7.8% higher at $41.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% loss over the past four weeks.
Abercrombie stock rallied on better-than-expected first-quarter fiscal 2021 results. Also, the fiscal first quarter marked the company’s return to profits. Earnings growth demonstrated the company’s robust digital sales momentum, coupled with gross margin expansion and tight expense management. Digital business mainly benefited from the addition of new customers in the channel backed by robust digital marketing efforts. The company’s brands also contributed meaningfully to sales growth. Additionally, the company is poised to benefit from prudent inventory management strategies, as well as store optimization and transformation plans.
The company reported adjusted earnings of $0.67 per share that beat the Zacks Consensus Estimate of a loss of $0.39 and marked a substantial growth from loss per share of $3.29 reported in the year-ago quarter. Net sales of $781.4 million surpassed the Zacks Consensus Estimate of $688.4 million and advanced 61% year over year. Notably, digital sales increased 45% year over year, contributing about 52% to total sales.
Price and Consensus
This teen clothing retailer is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -69.57%. Revenues are expected to be $815.82 million, up 16.82% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Abercrombie, the consensus EPS estimate for the quarter has been revised 40% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ANF going forward to see if this recent jump can turn into more strength down the road.
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Abercrombie (ANF) Surges 7.8%: Is This an Indication of Further Gains?
Abercrombie & Fitch (ANF - Free Report) shares ended the last trading session 7.8% higher at $41.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% loss over the past four weeks.
Abercrombie stock rallied on better-than-expected first-quarter fiscal 2021 results. Also, the fiscal first quarter marked the company’s return to profits. Earnings growth demonstrated the company’s robust digital sales momentum, coupled with gross margin expansion and tight expense management. Digital business mainly benefited from the addition of new customers in the channel backed by robust digital marketing efforts. The company’s brands also contributed meaningfully to sales growth. Additionally, the company is poised to benefit from prudent inventory management strategies, as well as store optimization and transformation plans.
The company reported adjusted earnings of $0.67 per share that beat the Zacks Consensus Estimate of a loss of $0.39 and marked a substantial growth from loss per share of $3.29 reported in the year-ago quarter. Net sales of $781.4 million surpassed the Zacks Consensus Estimate of $688.4 million and advanced 61% year over year. Notably, digital sales increased 45% year over year, contributing about 52% to total sales.
Price and Consensus
This teen clothing retailer is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -69.57%. Revenues are expected to be $815.82 million, up 16.82% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Abercrombie, the consensus EPS estimate for the quarter has been revised 40% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ANF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>