Abercrombie & Fitch Stock Rose on Solid Fiscal 4Q17 Results

1 2 3 4 5
Part 2
Abercrombie & Fitch Stock Rose on Solid Fiscal 4Q17 Results PART 2 OF 5

Abercrombie & Fitch’s Fiscal 4Q17 Sales Top Estimates

Sales up 15.1%

In fiscal 4Q17, Abercrombie & Fitch (ANF) reported sales of $1.19 billion, which beat the analysts’ projection of $1.16 billion. On a YoY (year-over-year) basis, sales were up 15.1%. Strength in the Hollister brand, international operations, as well as DTC (direct-to-customer) sales has driven the increase in sales. The US segment was the biggest contributor to the top line with sales of $774.6 million, an increase of 13%, while the international segment added $418.6 million, an increase of 20%, to the top line.

Abercrombie &amp; Fitch’s Fiscal 4Q17 Sales Top Estimates

Interested in ANF? Don't miss the next report.

Receive e-mail alerts for new research on ANF

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

For fiscal 4Q17, Hollister sales were up 19% to $709.2 million, while Abercrombie reported growth of 9% to $484 million. Also, the extra week added 4% to sales, while favorable foreign exchange fluctuations in fiscal 4Q17 resulted in a 3% increase in sales.

D2C impresses

To protect itself from the growing clout of online retailers such as Amazon (AMZN), Abercrombie & Fitch has been making investments to boost its e-commerce business. The company’s D2C sales accounted for 34% of total sales when compared with 31% reported in fiscal 4Q16. The mobile channel was the biggest contributor with over 70% of the digital traffic coming via this channel. The D2C channel saw comps (comparable store sales) growth of 18%. The conversion rate increased 14%.

Overall comps performance

The company’s comps saw growth of 9% in fiscal 4Q17 with US comps increasing 11%, while international comps were up 5%. Brand-wise, Hollister reported comps growth of 11%, while the company’s namesake brand, Abercrombie, reported comps growth of 5%. For fiscal 2018, management expects both sales and comps to be up in the low-single digits. Favorable forex movement is expected to add $50 million to the top line in 2018.

Peer performance

Urban Outfitters (URBN) reported fiscal 4Q18 net sales of $1.09 billion, which rose 5.7% from fiscal 4Q17 and easily topped analysts’ estimate of $1.08 billion. The company’s strong top-line performance was driven by positive comps witnessed across all the brands, namely Free People, Anthropologie, and Urban Outfitters.

In 4Q17, Gap (GPS) reported total sales of $4.8 billion in 4Q17, beating analysts’ estimate of $4.7 billion driven by strong comps growth of 5%.


Please select a profession that best describes you: