Abercrombie & Fitch misses by $0.13, reports revs in-line; guides Q2 revs below consensus; reaffirms FY20 revs guidance
- Reports Q1 (Apr) loss of $0.56 per share, excluding non-recurring items, $0.13 worse than the S&P Capital IQ Consensus of ($0.43); revenues rose 0.4% year/year to $733.97 mln vs the $730.79 mln S&P Capital IQ Consensus.
- Gross profit rate of 60.5%, flat to last year.
- Positive comparable sales of 1% includes Hollister comps +2% and Abercrombie comps +1%
- Co issues downside guidance for Q2, sees Q2 revs flat to up 2% (implying $842-859 mln) vs. $868.76 mln S&P Capital IQ Consensus.
- Comparable sales to be approximately flat, on 3% last year.
- Gross profit rate to be down approximately 100 basis points compared to 60.2% last year, assuming only the current tariffs in place.
- Co reaffirms guidance for FY20, sees FY20 revs of $3.66-3.73 bln vs. $3.68 bln S&P Capital IQ Consensus. Comparable sales to be up low-single digits. Gross profit rate to rise slightly from the fiscal 2018 rate of 60.2%, assuming only the current tariffs in place.
- "Reflecting a continued focus on global store network optimization, the company will be ceasing operations of its SoHo Hollister flagship store in New York City and has exercised the kick-out clause for its Fukuoka, Japan A&F flagship store. The company is also announcing that it exercised the kick-out clause for its Milan, Italy A&F flagship location."