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The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.2 billion, suggesting 1.6% growth from that reported in the year-ago quarter. For fiscal fourth-quarter earnings, the consensus mark is pegged at 85 cents per share, implying a decline of 25.4% from the year-ago quarter's reported figure. The consensus estimate has moved up by a penny in the past 30 days.
For fiscal 2022, the Zacks Consensus Estimate is pegged at $3.7 billion, suggesting a 1% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for fiscal 2022 earnings indicates a 94% year-over-year plunge to 27 cents. We expect the company’s fiscal 2022 total revenues to decline 1.1% year over year to $3.7 billion and the bottom line to decrease 95% to 22 cents per share.
In the last reported quarter, the company recorded an earnings surprise of 107.7%. ANF’s earnings have missed the Zacks Consensus Estimate by 142.8%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie, in its recent business update, highlighted that its brands performed well during the peak holiday season, reflecting a rise from the third-quarter reported levels. ANF noted that the momentum continued at the Abercrombie brand in the holiday fest, with the women’s business performing exceptionally well.
Consequently, the company expects the women’s business to have recorded the highest-ever fourth-quarter sales this fiscal year. It also anticipated the Hollister brand to conclude the fiscal fourth quarter with sales improvement on a sequential basis, driven by the realization of initial gains from assortment adjustments and personnel changes.
ANF has been on track with its actions to tightly manage operating expenses, along with long-term investments in its operations, particularly in technology, stores and supply chains. Management expects these investments to have aided its 2025 Always Forward Plan.
Abercrombie’s average unit retail (AUR) is also likely to have gained from strength across the Abercrombie brand, reduced promotional activity and higher tickets. Moreover, it has been focused on store rationalization efforts by reducing the dependence on underperforming tourist-driven locations. As part of its store optimization plans, Abercrombie has been intending to reposition larger-format flagship locations to smaller omni-channel-enabled stores. As part of this, the company, in its last earnings report, predicted to close 30 stores in fiscal 2022.
On its last earnings report, management envisioned fourth-quarter fiscal 2022 net sales to grow 1-2% compared with the prior mentioned decline of 2-4%. The company anticipated an operating margin of 6-8% compared with the 5-7% mentioned earlier. For fiscal 2022, ANF expected net sales to decline 1% from the year-ago period’s reported figure of $3.7 billion. The company expected an operating margin of 2.5-3% for fiscal 2022 compared with the prior stated 2-3%.
Our estimate indicates a 3.5% rise in Abercrombie brand revenues for the fiscal fourth quarter, with an 0.8% decline for the Hollister brand. We also forecast net sales to rise 1% to $1.2 billion.
However, the company has been reeling under escalated raw material and freight costs. These downsides are expected to have dented margins in the quarter under review. Also, higher digital fulfillment expenses remain concerning.
It has also been witnessing the adverse impacts of foreign currency. On its last reported quarter’s earnings report, management anticipated fiscal 2022 sales to have a 200-bps impact from adverse currency rates. Also, the sales view for the fiscal fourth quarter includes a 210-bps impact of adverse currency rates. Tepid consumer demand stemming from rising inflationary pressures is likely to have dampened the fiscal fourth-quarter performance to some extent.
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 currently sports a Zacks Rank #1 and has an Earnings ESP of -3.53%.
Stocks With Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +14.04% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.67 suggests a decrease of 2.3% from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.5 billion, indicating an increase of 15.5% from the figure reported in the year-ago quarter.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +2.90% and a Zacks Rank of 2. The company is likely to register an increase in bottom lines when it reports fourth-quarter fiscal 2022 numbers. The consensus mark for BURL’s quarterly earnings has moved up by a penny in the past seven days to $2.72 per share. The consensus estimate suggests 7.5% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Burlington Stores’ quarterly revenues is pegged at $2.6 billion, which suggests a decline of 0.3% from the figure reported in the prior-year quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +7.97% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2022 results. The consensus mark for DKS’ quarterly revenues is pegged at $3.4 billion, which suggests a rise of 1.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for DICK'S Sporting’s earnings has moved down by a penny to $2.86 per share in the past 30 days. The consensus estimate indicates a 21.4% decline from the year-ago quarter’s reported figure.
Image: Bigstock
Factors Likely to Influence Abercrombie's (ANF) Q4 Earnings
Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Mar 1, before the opening bell.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.2 billion, suggesting 1.6% growth from that reported in the year-ago quarter. For fiscal fourth-quarter earnings, the consensus mark is pegged at 85 cents per share, implying a decline of 25.4% from the year-ago quarter's reported figure. The consensus estimate has moved up by a penny in the past 30 days.
For fiscal 2022, the Zacks Consensus Estimate is pegged at $3.7 billion, suggesting a 1% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for fiscal 2022 earnings indicates a 94% year-over-year plunge to 27 cents. We expect the company’s fiscal 2022 total revenues to decline 1.1% year over year to $3.7 billion and the bottom line to decrease 95% to 22 cents per share.
In the last reported quarter, the company recorded an earnings surprise of 107.7%. ANF’s earnings have missed the Zacks Consensus Estimate by 142.8%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie & Fitch Company price-eps-surprise | Abercrombie & Fitch Company Quote
Factors to Note
Abercrombie, in its recent business update, highlighted that its brands performed well during the peak holiday season, reflecting a rise from the third-quarter reported levels. ANF noted that the momentum continued at the Abercrombie brand in the holiday fest, with the women’s business performing exceptionally well.
Consequently, the company expects the women’s business to have recorded the highest-ever fourth-quarter sales this fiscal year. It also anticipated the Hollister brand to conclude the fiscal fourth quarter with sales improvement on a sequential basis, driven by the realization of initial gains from assortment adjustments and personnel changes.
ANF has been on track with its actions to tightly manage operating expenses, along with long-term investments in its operations, particularly in technology, stores and supply chains. Management expects these investments to have aided its 2025 Always Forward Plan.
Abercrombie’s average unit retail (AUR) is also likely to have gained from strength across the Abercrombie brand, reduced promotional activity and higher tickets. Moreover, it has been focused on store rationalization efforts by reducing the dependence on underperforming tourist-driven locations. As part of its store optimization plans, Abercrombie has been intending to reposition larger-format flagship locations to smaller omni-channel-enabled stores. As part of this, the company, in its last earnings report, predicted to close 30 stores in fiscal 2022.
On its last earnings report, management envisioned fourth-quarter fiscal 2022 net sales to grow 1-2% compared with the prior mentioned decline of 2-4%. The company anticipated an operating margin of 6-8% compared with the 5-7% mentioned earlier. For fiscal 2022, ANF expected net sales to decline 1% from the year-ago period’s reported figure of $3.7 billion. The company expected an operating margin of 2.5-3% for fiscal 2022 compared with the prior stated 2-3%.
Our estimate indicates a 3.5% rise in Abercrombie brand revenues for the fiscal fourth quarter, with an 0.8% decline for the Hollister brand. We also forecast net sales to rise 1% to $1.2 billion.
However, the company has been reeling under escalated raw material and freight costs. These downsides are expected to have dented margins in the quarter under review. Also, higher digital fulfillment expenses remain concerning.
It has also been witnessing the adverse impacts of foreign currency. On its last reported quarter’s earnings report, management anticipated fiscal 2022 sales to have a 200-bps impact from adverse currency rates. Also, the sales view for the fiscal fourth quarter includes a 210-bps impact of adverse currency rates. Tepid consumer demand stemming from rising inflationary pressures is likely to have dampened the fiscal fourth-quarter performance to some extent.
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 currently sports a Zacks Rank #1 and has an Earnings ESP of -3.53%.
Stocks With Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +14.04% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.67 suggests a decrease of 2.3% from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.5 billion, indicating an increase of 15.5% from the figure reported in the year-ago quarter.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +2.90% and a Zacks Rank of 2. The company is likely to register an increase in bottom lines when it reports fourth-quarter fiscal 2022 numbers. The consensus mark for BURL’s quarterly earnings has moved up by a penny in the past seven days to $2.72 per share. The consensus estimate suggests 7.5% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Burlington Stores’ quarterly revenues is pegged at $2.6 billion, which suggests a decline of 0.3% from the figure reported in the prior-year quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +7.97% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2022 results. The consensus mark for DKS’ quarterly revenues is pegged at $3.4 billion, which suggests a rise of 1.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for DICK'S Sporting’s earnings has moved down by a penny to $2.86 per share in the past 30 days. The consensus estimate indicates a 21.4% decline from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.