Abercrombie & Fitch’s sales fall 7 percent

“We expect pressure on many USA retail companies to increase this year, leading to at least as many defaults as in 2016”, writes credit analyst Robert Schulz.

Abercrombie & Fitch (NYSE:ANF) reported net income for the fourth quarter of $ 48.79 million or $ 0.71 per share, compared to income $ 57.74 million or $ 0.85 per share for the year-ago quarter. The stock is presently trading up its SMA-50 of $11.95. There was a stock decrease by -2.61 percent. The analysts, on average, are forecasting a $13.3 price target, but the stock is already up 7.15% from its recent lows. According to these analysts, the Low Revenue Estimate for Abercrombie & Fitch Co.is 986.5 Million and the High Revenue Estimate is 1.1 Billion. The difference between the expected and actual EPS was $-0.19/share, which represents an Earnings surprise of -90.5%.

Many analysts have provided their estimated foresights on Abercrombie & Fitch Co. (NYSE:ANF) traded at a yearly high level of $32.83 during the current trading session. Analysts have a mean recommendation of 3.30 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range). According to them, the median (average) EPS the company could deliver is 0.75/share. Apart From certain items, the company stated adjusted non-GAAP net loss per diluted share of $0.06 for the full year, contrast to adjusted non-GAAP net income per diluted share of $1.12 for the full year last year. The analysts offering Earnings Estimates for the company were believing that Abercrombie & Fitch Co. Deutsche Bank AG downgraded Abercrombie & Fitch Company from a “hold” rating to a “sell” rating and dropped their price target for the company from $14.00 to $13.00 in a research report on Wednesday, November 23rd.

The New Albany, OH-based clothing retailer reported Q4 earnings per share (EPS) of $0.71, which was $0.06 worse than the Wall Street consensus estimate of $0.77. 20 Analysts reported that the Price Target for Abercrombie & Fitch Co. might touch $19 high while the Average Price Target and Low price Target is $13.3 and $10 respectively. Direct-to-consumer and omni-channel sales grew to approximately 31 percent of total company net sales for the fourth quarter, compared to approximately 28 percent of total company net sales a year ago.

Looking ahead, ANF said it expects comparable sales to improve in 2017.

The latest Insider trade was made on 5 Jan 2017 where Bostrom (Robert E) General Counsel did a transaction type “Buy” in which 3600 shares were traded at a price of $0. The stock has a market capitalization of $770.51M and it has 67.67M outstanding shares. The Weekly and Monthly Volatility stands at 5.10% and 4.41%. The company’s stock has fell -17.63 percent in the past five year. The next year’s growth is calculated to be 400 percent. The company projects a long term annual growth estimate of 17.67 percent. Jefferies also Downgrade the company to Hold on 3-Jan-17, 2016. Abercrombie & Fitch Company’s dividend payout ratio is now 421.05%.