Abercrombie & Fitch Sees 2% - 4% Sales Growth In FY18

(RTTNews) - Abercrombie & Fitch Co. (ANF) said it expects net sales for fiscal 2018 to be up in the range of 2% to 4%, with net sales in the second quarter to be up high-single digits, including benefits from changes in foreign currency exchange rates and the calendar shift.

For fiscal 2018, the company now expects comparable sales to be up in the range of 2% to 4%.

The company now targets capital expenditures to be in the range of $135 million to $140 million for fiscal 2018. Capital expenditures are expected to include approximately $85 million for store updates and new stores and between $50 million to $55 million for direct-to-consumer and omnichannel investments, information technology and other projects.

The company plans to open 22 full-price stores in fiscal 2018, including 13 Hollister and nine Abercrombie stores. In addition, the company anticipates closing up to 60 stores in the U.S. during the fiscal year through natural lease expirations.

Net loss attributable to Abercrombie & Fitch Co. for the first quarter ended May 5, 2018 was $42.5 million, compared to a loss of $61.7 million last year. Excluding the after-tax effect of certain legal charges, adjusted non-GAAP net loss attributable to Abercrombie & Fitch Co. was $38.4 million.

GAAP net loss per share of $0.62 for the first quarter, compared to GAAP net loss per diluted share of $0.91 for the first quarter ended April 29, 2017. Excluding certain items this year, the company reported adjusted non-GAAP net loss per diluted share of $0.56 for the quarter. Year-over-year changes in foreign currency exchange rates, net of hedging, was a benefit of approximately $0.03 per share.

Net sales for the first-quarter were $730.9 million, up 11% from last year, with comparable sales up 5%. Changes in foreign currency exchange rates and the calendar shift resulting from the 53rd week in fiscal 2017 benefited first quarter net sales by approximately 4% and 1%, respectively, which do not impact comparable sales.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.77 per share and revenues of $696.65 million. Analysts' estimates typically exclude special items.