Abercrombie’s Better-Than-Expected Growth And Long Term Potential Overshadow Weak Guidance

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Abercrombie & Fitch

Abercrombie & Fitch missed the consensus estimates with its 2016 comparable sales guidance, but its Q4 comparable sales growth was much better than expected and the company is progressing very well with its portfolio transition across the board. The lackluster guidance can be regarded as a one off case owing to the temporary closures of Hollister stores to be remodeled.  Thus,  the earnings appear good, which is why Abercrombie’s shares were up more than 5% after the report. From a long term perspective, the company appears in good shape with the revamp of its selling and merchandising strategies.

abercrombie and fitch earnings

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Abercrombie & Fitch
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