Abercrombie & Fitch Shares Close Higher On Upbeat Q4

(RTTNews) - Shares of Abercrombie & Fitch Co. (ANF) closed higher yesterday, after the apparel retailer reported Q4 results that topped estimates. The stock has been trading between $12.53 and $30.63 in the past one year, and closed Wednesday's trade at $13.83, up $1.14 or 8.98%. Trading volume rose to 4.86 million versus an average volume of 2.10 million shares.

The company's Q4 net income was $83.13 million or $1.29 per share versus $96.9 million or $1.42 per share last year. Adjusted non-GAAP net income was $83.9 million or $1.31 per share compared to $91.6 million or $1.35 per share in the prior year period. However, net sales increased to $1.18 billion from $1.16 billion generated a year ago.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.23 per share and revenue of $1.17 billion for the fourth-quarter. Analysts' estimates typically exclude certain special items.

Fran Horowitz, Chief Executive Officer, said, "We finished the year on a strong note, with record Black Friday week results contributing to net sales growth and positive comparable sales for the fourth quarter, and for the third consecutive year. Consistent with recent trends, Abercrombie outperformed Hollister and the U.S. outperformed international, which although still lagging registered significant sequential improvement."

The company currently expects the majority of the impact from COVID-19 to occur in the first half of fiscal 2020.

For the first quarter of fiscal 2020, the company expects net sales to be down mid-single digits, reflecting the estimated adverse impact of COVID-19 in the range of $40 million - $50 million and the adverse impact of changes in foreign currency exchange rates of about $5 million. Comparable sales for the first-quarter are anticipated to be down mid-single digits, compared to positive comparable sales of 1% last year.

Looking ahead for fiscal 2020, the company projects net sales to be flat to up 2%, reflecting the estimated adverse impact of COVID-19 in the range of $60 million - $80 million and the adverse impact of changes in foreign currency exchange rates of about $10 million. The company expects annual comparable sales to be down low-single digits, compared to positive comparable sales of 1% last year.