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Factors Likely to Drive Abercrombie (ANF) in Q3 Earnings
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Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report third-quarter fiscal 2021 results on Nov 23, before the opening bell. The leading apparel retailer is expected to register top-line growth when it reports third-quarter fiscal 2021 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $894.4 million, suggesting 9.1% growth from that reported in the year-ago quarter. The consensus mark for earnings is pegged at 67 cents per share, implying a decline of 11.8% from the year-ago quarter's reported figure. However, the consensus estimate has increased 4.7% in the past seven days.
In the last reported quarter, the company's earnings beat the Zacks Consensus Estimate by 126.7%. ANF also has an earnings surprise of 510.9%, on average, for the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie's third-quarter fiscal 2021 earnings results are expected to reflect gains from a robust digital sales momentum, gross margin expansion and tight expense control. The digital business is expected to have mainly benefited from the addition of customers in the channel, backed by robust digital marketing efforts. Also, high customer retention and spend per customer are likely to have boosted sales in the to-be-reported quarter.
On the last reported quarter's earnings call, the company indicated that the performance in the initial part of third-quarter fiscal 2021 was encouraging, driven by robust back-to-school sales in the United States. ANF stated that it remains on track to leverage some of its structural cost-savings and boost top-line growth through investments in brand marketing, digital experience, and growing Gilly Hicks and Social Tourist brands. These efforts are likely to have aided the company's fiscal third-quarter performance. While ANF expected supply-chain disruptions, and cost and delays associated with the same to persist, it anticipated maintaining inventory discipline.
For third-quarter fiscal 2021, Abercrombie anticipates net sales growth of 2-4% from the 2019 reported level of $863 million. ANF expects the United States to be the largest contributor to sales growth, outpacing the EMEA and APAC regions. The company expects the gross margin rate to increase 300 bps in the fiscal third quarter from 60.1% reported in third-quarter fiscal 2019.
However, Abercrombie remains cautiously optimistic about its ability to deliver AUR improvements through reduced promotions and clearance activity. ANF also anticipates higher operating expenses for the fiscal third quarter, owing to elevated fulfillment expenses. The company predicts higher marketing expenses from that reported in third-quarter fiscal 2019 to drive social and digital media momentum across brands. Operating expenses are expected to increase in low-single digits from adjusted operating expenses of $494 million reported in the comparative 2019 period.
Supply-chain disruptions and higher freight costs are anticipated to have persisted in the third quarter and fiscal 2021. Management predicts the gross margin for the fiscal third quarter to include a 300-400-bps impact of increased freight costs.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Abercrombie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Abercrombie has a Zacks Rank #3 and an Earnings ESP of +8.27%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
American Eagle (AEO - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank of 3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for AEO's quarterly revenues is pegged at $1.23 billion, which suggests a rise of 19.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for American Eagle's quarterly earnings moved up by a penny in the last seven days to 61 cents per share, suggesting 74.3% growth from the year-ago quarter's reported number. AEO has delivered an earnings beat of 7.5%, on average, in the trailing four quarters.
Nordstrom (JWN - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for JWN's quarterly earnings moved up 3.7% in the last seven days to 56 cents per share, suggesting 154.6% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Nordstrom's quarterly revenues is pegged at $3.54 billion, suggesting growth of 14.5% from the figure reported in the prior-year quarter. JWN has delivered an earnings beat of 557.3%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +27.97% and a Zacks Rank #3. The company is expected to register top-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for JWN's quarterly earnings moved up 3.3% in the last 30 days to $1.88 per share, suggesting a decline of 6.5% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for DICK'S Sporting's quarterly revenues is pegged at $2.42 billion, which suggests growth of 0.4% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 117.4%, on average, in the trailing four quarters.
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Factors Likely to Drive Abercrombie (ANF) in Q3 Earnings
Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report third-quarter fiscal 2021 results on Nov 23, before the opening bell. The leading apparel retailer is expected to register top-line growth when it reports third-quarter fiscal 2021 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $894.4 million, suggesting 9.1% growth from that reported in the year-ago quarter. The consensus mark for earnings is pegged at 67 cents per share, implying a decline of 11.8% from the year-ago quarter's reported figure. However, the consensus estimate has increased 4.7% in the past seven days.
In the last reported quarter, the company's earnings beat the Zacks Consensus Estimate by 126.7%. ANF also has an earnings surprise of 510.9%, on average, for the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie & Fitch Company price-eps-surprise | Abercrombie & Fitch Company Quote
Key Factors to Note
Abercrombie's third-quarter fiscal 2021 earnings results are expected to reflect gains from a robust digital sales momentum, gross margin expansion and tight expense control. The digital business is expected to have mainly benefited from the addition of customers in the channel, backed by robust digital marketing efforts. Also, high customer retention and spend per customer are likely to have boosted sales in the to-be-reported quarter.
On the last reported quarter's earnings call, the company indicated that the performance in the initial part of third-quarter fiscal 2021 was encouraging, driven by robust back-to-school sales in the United States. ANF stated that it remains on track to leverage some of its structural cost-savings and boost top-line growth through investments in brand marketing, digital experience, and growing Gilly Hicks and Social Tourist brands. These efforts are likely to have aided the company's fiscal third-quarter performance. While ANF expected supply-chain disruptions, and cost and delays associated with the same to persist, it anticipated maintaining inventory discipline.
For third-quarter fiscal 2021, Abercrombie anticipates net sales growth of 2-4% from the 2019 reported level of $863 million. ANF expects the United States to be the largest contributor to sales growth, outpacing the EMEA and APAC regions. The company expects the gross margin rate to increase 300 bps in the fiscal third quarter from 60.1% reported in third-quarter fiscal 2019.
However, Abercrombie remains cautiously optimistic about its ability to deliver AUR improvements through reduced promotions and clearance activity. ANF also anticipates higher operating expenses for the fiscal third quarter, owing to elevated fulfillment expenses. The company predicts higher marketing expenses from that reported in third-quarter fiscal 2019 to drive social and digital media momentum across brands. Operating expenses are expected to increase in low-single digits from adjusted operating expenses of $494 million reported in the comparative 2019 period.
Supply-chain disruptions and higher freight costs are anticipated to have persisted in the third quarter and fiscal 2021. Management predicts the gross margin for the fiscal third quarter to include a 300-400-bps impact of increased freight costs.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Abercrombie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Abercrombie has a Zacks Rank #3 and an Earnings ESP of +8.27%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
American Eagle (AEO - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank of 3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for AEO's quarterly revenues is pegged at $1.23 billion, which suggests a rise of 19.1% from the figure reported in the prior-year quarter.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle's quarterly earnings moved up by a penny in the last seven days to 61 cents per share, suggesting 74.3% growth from the year-ago quarter's reported number. AEO has delivered an earnings beat of 7.5%, on average, in the trailing four quarters.
Nordstrom (JWN - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for JWN's quarterly earnings moved up 3.7% in the last seven days to 56 cents per share, suggesting 154.6% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Nordstrom's quarterly revenues is pegged at $3.54 billion, suggesting growth of 14.5% from the figure reported in the prior-year quarter. JWN has delivered an earnings beat of 557.3%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +27.97% and a Zacks Rank #3. The company is expected to register top-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for JWN's quarterly earnings moved up 3.3% in the last 30 days to $1.88 per share, suggesting a decline of 6.5% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for DICK'S Sporting's quarterly revenues is pegged at $2.42 billion, which suggests growth of 0.4% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 117.4%, on average, in the trailing four quarters.