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The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.42 billion, suggesting 18.6% growth from that reported in the year-ago quarter. For fiscal fourth-quarter earnings, the consensus mark is pegged at $2.81 per share, implying a significant increase from 81 cents reported in the year-ago quarter. The consensus estimate for earnings has moved up 1.1% in the past seven days.
In the last reported quarter, the company’s earnings beat the consensus estimate by 60.5%. Moreover, ANF has delivered an earnings surprise of 713%, on average, in the trailing four quarters.
Factors to Note
Abercrombie has been gaining from continued momentum in the Abercrombie brand, improvement in the Hollister brand and store-optimization efforts. The company noted that its efforts to improve the brand positioning of the Hollister brand have been paying off. Strategic investments across stores, digital and technology via its Always Forward Plan bode well.
In early January, management cited that it witnessed a robust performance during the holiday season, backed by the continued positive response to the compelling product assortments and engaging marketing. Abercrombie highlighted that the holiday season featured strong sales growth from each of its brands, particularly the Abercrombie brand. The company expects the women's business of the Abercrombie brand to attain the highest-ever fiscal fourth-quarter sales, complemented by augmented men's category growth.
Additionally, ANF anticipates the Hollister brand to deliver year-over-year fiscal fourth-quarter sales growth, led by the women's business. The Hollister brand is also on track for significant fiscal fourth-quarter gross profit margin expansion, attributed to improved product and inventory management. This aligns with the company's continued trend of profitable growth.
Management had anticipated net sales growth across regions, led by continued strength in the Americas for fourth-quarter fiscal 2023. It had expected fiscal fourth-quarter net sales growth in the high teens, a substantial uptick from the previously mentioned low-double-digit growth. The operating margin for the fiscal fourth quarter is projected to be around 15%. Our model predicts fourth-quarter fiscal 2023 sales for the Abercrombie brand to increase 16.9% year over year. Sales for Hollister are expected to improve 17.6% year over year.
Lower freight costs and robust average unit retail growth are likely to have aided margins in the fiscal to-be-reported quarter. We expect the gross margin to expand 430 bps year over year to 60% in the fiscal fourth quarter. Our model predicts an adjusted operating margin of 8.1%, suggesting a 620 bps expansion from 13.8% in the year-ago quarter.
However, higher expenses resulting from inflation and increased investment for the 2025 Always Forward Plan initiatives are likely to have been concerns in the to-be-reported quarter. Additionally, investments in digital and technology and higher incentive-based compensation are expected to add up to costs.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 chances of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie currently has an Earnings ESP of -1.25% and sports a Zacks Rank of 1.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. AEO is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.66 billion, indicating 11.2% growth from that reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for American Eagle’s fiscal fourth-quarter earnings is pegged at 50 cents per share, indicating 35.1% growth from the year-ago quarter's actuals. The consensus mark has been stable in the past 30 days.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. DKS is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, implying 4.2% growth from that reported in the prior-year quarter.
The consensus estimate for DKS’ fiscal fourth-quarter earnings is pegged at $3.33 per share, indicating year-over-year growth of 13.7%. The consensus mark has moved up 1.2% in the past 30 days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +5.21% and a Zacks Rank of 3. NKE is likely to register a top and bottom-line decline in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.3 billion, suggesting a 0.8% drop from the figure reported in the year-ago quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 70 cents per share, suggesting an 11.4% decline from the year-ago quarter. The consensus mark has moved down a couple of cents in the past 30 days.
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Abercrombie (ANF) to Post Q4 Earnings: What's in the Cards?
Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Mar 6 before the opening bell.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.42 billion, suggesting 18.6% growth from that reported in the year-ago quarter. For fiscal fourth-quarter earnings, the consensus mark is pegged at $2.81 per share, implying a significant increase from 81 cents reported in the year-ago quarter. The consensus estimate for earnings has moved up 1.1% in the past seven days.
In the last reported quarter, the company’s earnings beat the consensus estimate by 60.5%. Moreover, ANF has delivered an earnings surprise of 713%, on average, in the trailing four quarters.
Factors to Note
Abercrombie has been gaining from continued momentum in the Abercrombie brand, improvement in the Hollister brand and store-optimization efforts. The company noted that its efforts to improve the brand positioning of the Hollister brand have been paying off. Strategic investments across stores, digital and technology via its Always Forward Plan bode well.
In early January, management cited that it witnessed a robust performance during the holiday season, backed by the continued positive response to the compelling product assortments and engaging marketing. Abercrombie highlighted that the holiday season featured strong sales growth from each of its brands, particularly the Abercrombie brand. The company expects the women's business of the Abercrombie brand to attain the highest-ever fiscal fourth-quarter sales, complemented by augmented men's category growth.
Additionally, ANF anticipates the Hollister brand to deliver year-over-year fiscal fourth-quarter sales growth, led by the women's business. The Hollister brand is also on track for significant fiscal fourth-quarter gross profit margin expansion, attributed to improved product and inventory management. This aligns with the company's continued trend of profitable growth.
Management had anticipated net sales growth across regions, led by continued strength in the Americas for fourth-quarter fiscal 2023. It had expected fiscal fourth-quarter net sales growth in the high teens, a substantial uptick from the previously mentioned low-double-digit growth. The operating margin for the fiscal fourth quarter is projected to be around 15%. Our model predicts fourth-quarter fiscal 2023 sales for the Abercrombie brand to increase 16.9% year over year. Sales for Hollister are expected to improve 17.6% year over year.
Lower freight costs and robust average unit retail growth are likely to have aided margins in the fiscal to-be-reported quarter. We expect the gross margin to expand 430 bps year over year to 60% in the fiscal fourth quarter. Our model predicts an adjusted operating margin of 8.1%, suggesting a 620 bps expansion from 13.8% in the year-ago quarter.
However, higher expenses resulting from inflation and increased investment for the 2025 Always Forward Plan initiatives are likely to have been concerns in the to-be-reported quarter. Additionally, investments in digital and technology and higher incentive-based compensation are expected to add up to costs.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 chances of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie & Fitch Company price-eps-surprise | Abercrombie & Fitch Company Quote
Abercrombie currently has an Earnings ESP of -1.25% and sports a Zacks Rank of 1.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. AEO is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.66 billion, indicating 11.2% growth from that reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for American Eagle’s fiscal fourth-quarter earnings is pegged at 50 cents per share, indicating 35.1% growth from the year-ago quarter's actuals. The consensus mark has been stable in the past 30 days.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. DKS is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, implying 4.2% growth from that reported in the prior-year quarter.
The consensus estimate for DKS’ fiscal fourth-quarter earnings is pegged at $3.33 per share, indicating year-over-year growth of 13.7%. The consensus mark has moved up 1.2% in the past 30 days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +5.21% and a Zacks Rank of 3. NKE is likely to register a top and bottom-line decline in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.3 billion, suggesting a 0.8% drop from the figure reported in the year-ago quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 70 cents per share, suggesting an 11.4% decline from the year-ago quarter. The consensus mark has moved down a couple of cents in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.