Apparel retailer Abercrombie & Fitch (ANF) reported better-than-expected earnings and sales results for the fourth quarter of 2018. The company reported adjusted EPS of $1.35 versus the Street’s estimation of $1.15. Sales stood at $1.16 billion for the quarter ended February 2, 2019 compared to the analysts’ prediction of $1.13 billion. ANF stock soared 10% in the pre-market trading hours on Wednesday.
On a GAAP basis, earnings for the quarter increased to $1.42 per share from $1.05 per share in the same period last year. Comparable sales grew 3% on top of 9% growth in the previous year.
For fiscal 2019, the company expects sales to be up in the range of 2% to 4% and comp sales to be up low-single digits. Abercrombie & Fitch plans to deliver approximately 85 new store experiences through new store prototypes, remodeled stores and right-sizes. The company also predicts to shut down up to 40 stores, primarily in the US.
For the first quarter of 2019, ANF estimates sales to be flat compared to last year and comp sales to be in the range of flat to up 2%. For both the quarter and the year, changes in foreign currency exchange rates are expected to adversely impact sales by approximately $15 million.
“We ended 2018 on a strong note, recording our sixth consecutive quarter and second consecutive full year of positive comparable sales while exceeding $1 billion in annual digital sales,” said CEO Fran Horowitz.
Apparel retailers Ross Stores (ROST) and Urban Outfitters (URBN) posted their recently ended quarterly results yesterday after market close. Ross Stores stock traded in the negative territory today morning as the company’s outlook was below expectations. Shares of Urban Outfitters also traded in the red during pre-market hours, hurt by the weaker outlook for Q1.
ANF shares, which closed down 1.11% at $21.35 on Tuesday, had gained 6% since the beginning of the year and 13% in the past three months period.