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Factors Likely to Affect Abercrombie (ANF) in Q3 Earnings
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Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report third-quarter fiscal 2022 results on Nov 22, before the opening bell. The leading apparel retailer is expected to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $829.3 million, suggesting an 8.4% decline from that reported in the year-ago quarter. For fiscal third-quarter earnings, the consensus mark is pegged at a loss of 13 cents per share, implying a decline of 115.1% from the year-ago quarter's reported figure. The consensus estimate has moved down by a penny in the past 60 days.
In the last reported quarter, the company recorded a negative earnings surprise of 230.4%. ANF’s earnings have missed the Zacks Consensus Estimate by 163.1%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie has been reeling under challenging environment and weakness in its Hollister brand, stemming from inflation and the shift in consumer preference. On its last reported quarter’s earnings call, management expected third-quarter fiscal 2022 net sales to decline in the high-single digits.
Higher product costs due to inflation and elevated digital fulfillment expenses are likely to have dented margins in the fiscal third quarter. For third-quarter fiscal 2022, the company anticipated a break-even operating margin mainly due to dismal sales and lower AURs.
The company has also been witnessing the adverse impacts of foreign currency. On its last reported quarter’s earnings report, management anticipated fiscal third-quarter sales to have a 220-bps impact from adverse currency rates.
However, ANF continues to benefit from strength across dresses, jeans and knits. Also, reduced promotional activity and higher tickets act as upsides. Its store optimization is also expected to have provided some cushion to the stock in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Abercrombie this season. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Abercrombie has a Zacks Rank #4 (Sell) and an Earnings ESP of -16.25%.
3 Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% 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 Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from the $1.09 reported in the year-ago quarter.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +8.48% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for BURL’s quarterly earnings has moved up by a penny in the past 30 days to 52 cents per share. However, the consensus estimate suggests a 61.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Burlington’s quarterly revenues is pegged at $2.1 billion, which suggests a decline of 10.9% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
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Factors Likely to Affect Abercrombie (ANF) in Q3 Earnings
Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report third-quarter fiscal 2022 results on Nov 22, before the opening bell. The leading apparel retailer is expected to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $829.3 million, suggesting an 8.4% decline from that reported in the year-ago quarter. For fiscal third-quarter earnings, the consensus mark is pegged at a loss of 13 cents per share, implying a decline of 115.1% from the year-ago quarter's reported figure. The consensus estimate has moved down by a penny in the past 60 days.
In the last reported quarter, the company recorded a negative earnings surprise of 230.4%. ANF’s earnings have missed the Zacks Consensus Estimate by 163.1%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie & Fitch Company price-eps-surprise | Abercrombie & Fitch Company Quote
Abercrombie has been reeling under challenging environment and weakness in its Hollister brand, stemming from inflation and the shift in consumer preference. On its last reported quarter’s earnings call, management expected third-quarter fiscal 2022 net sales to decline in the high-single digits.
Higher product costs due to inflation and elevated digital fulfillment expenses are likely to have dented margins in the fiscal third quarter. For third-quarter fiscal 2022, the company anticipated a break-even operating margin mainly due to dismal sales and lower AURs.
The company has also been witnessing the adverse impacts of foreign currency. On its last reported quarter’s earnings report, management anticipated fiscal third-quarter sales to have a 220-bps impact from adverse currency rates.
However, ANF continues to benefit from strength across dresses, jeans and knits. Also, reduced promotional activity and higher tickets act as upsides. Its store optimization is also expected to have provided some cushion to the stock in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Abercrombie this season. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Abercrombie has a Zacks Rank #4 (Sell) and an Earnings ESP of -16.25%.
3 Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% 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 Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from the $1.09 reported in the year-ago quarter.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +8.48% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for BURL’s quarterly earnings has moved up by a penny in the past 30 days to 52 cents per share. However, the consensus estimate suggests a 61.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Burlington’s quarterly revenues is pegged at $2.1 billion, which suggests a decline of 10.9% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.