ANF: Abercrombie Needs to Pick Up the Pace
Mid Cap Watch List (Track at Marketocracy) and Large Cap Watch List (Track at Marketocracy) member Abercrombie & Fitch Co. (ANF) reported unaudited results which reflected record first quarter net income of $60.1 million and net income per diluted share of $0.65 for the thirteen weeks ended May 5, 2007.
Analysts had been expecting the company to earn $0.65 after the company recently preannounced. For the second time. Sales managed to rise 13% overall to $742 million despite a 4% decline at stores open more than one year. The sales number also failed to meet consensus estimates. Still, shares were up following the report on hopes that the worst of the same-store sales declines are past:
The Company reaffirmed its previously disclosed earnings guidance which stated it expects net income per diluted share for the first-half of Fiscal 2007 to be in the range of $1.47 to $1.52, representing between 10% to 13%
earnings growth over the first half of Fiscal 2006. The low end of the guidance reflects a flat comparable store sales scenario for the second quarter of Fiscal 2007.
The guidance implies second quarter EPS of $0.82 - $0.87, and analysts were at the low end of that range with $0.83. The key will be whether the company can finally live up to its early forecasts.
Like this article? Why not try out:
