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Abercrombie & Fitch Co. (NYSE:ANF) Surpasses Earnings Estimates but Lowers Profit Outlook

  • Abercrombie & Fitch Co. (NYSE:ANF) reported an EPS of $1.59, beating the estimated $1.35 and marking a 17.78% earnings surprise.
  • Despite a slight revenue miss, ANF’s stock surged over 22% following the announcement of record first-quarter sales, with significant contributions from its Hollister brand.
  • The company has adjusted its full-year profit forecast downward due to tariffs, now expecting an EPS range between $9.50 and $10.10, slightly above analyst consensus.

Abercrombie & Fitch Co. (NYSE:ANF) is a well-known American retailer specializing in casual wear. The company operates under several brands, including Abercrombie & Fitch and Hollister, targeting young consumers. Despite facing challenges in the retail sector, ANF continues to adapt and compete with other major retailers like American Eagle and Gap.

On May 28, 2025, ANF reported earnings per share (EPS) of $1.59, exceeding the estimated $1.35. This represents an earnings surprise of 17.78%, as highlighted by Zacks. However, this is a decrease from the $2.14 per share reported in the same quarter last year. The company generated revenue of approximately $1.1 billion, slightly below the estimated $1.18 billion, but still a 3.82% increase from the previous year’s $1.02 billion.

Despite lowering its profit outlook due to tariffs, ANF’s stock surged over 22% following the announcement of record first-quarter sales. The Hollister brand played a significant role, with sales increasing by 22% to approximately $549 million. Overall, first-quarter sales rose by 8% compared to the same period last year, although the Abercrombie brand saw a 4% decline.

ANF has adjusted its full-year profit forecast downward, anticipating a $50 million negative impact from tariffs. The company now projects its full-year EPS to range between $9.50 and $10.10, down from the previous forecast of $10.40 to $11.40. Despite this, the revised outlook remains slightly above the analyst consensus of $10.33, reflecting investor confidence.

Financially, ANF maintains a price-to-earnings (P/E) ratio of approximately 8.07, indicating the market’s valuation of its earnings. The company’s price-to-sales ratio is about 0.88, suggesting investors pay less than a dollar for each dollar of sales. With a debt-to-equity ratio of approximately 0.71, ANF shows a moderate level of debt relative to its equity, while a current ratio of around 1.48 indicates good liquidity.

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