--> ANF +4.84% Pre open
Abercrombie & Fitch misses by $0.18, misses on revs; reaffirms gross margin guidance; sees sequential comp improvement
Reports Q1 (Apr) loss of $0.53 per share, excluding non-recurring items, $0.18 worse than the Capital IQ Consensus of ($0.35); revenues fell 14.0% year/year to $709 mln vs the $728.74 mln consensus.
- Comps -8% vs -9% estimate; Abercrombie -9%; Hollister -6%
- Adj. gross margin of 61.8% vs ~62% estimate
- Continued sequential comparable sales improvement into the second quarter and the second half of the fiscal year.
- Reaffirms gross margin rate to be flat to slightly up, driven by average unit cost reductions, partially offset by adverse effects from current foreign currency exchange rates.
- Continued headwinds from foreign currency exchange rates.