Core Insights - Retailers are experiencing mixed earnings reports, reflecting the impact of tariffs, consumer demand, and operational resilience [1] Group 1: Macy's Inc - Macy's reported adjusted first-quarter earnings of 16 cents per share on revenue of $4.60 billion, exceeding Wall Street expectations [2] - The company has cut its full-year profit forecast due to tariff hikes and increased promotions [2] - Macy's is undergoing a significant turnaround, closing approximately 150 stores and focusing on stronger brands like Bloomingdale's and Bluemercury [2] - Despite a 4% increase before the market opened, Macy's stock is down over 28% year to date [2] Group 2: Abercrombie & Fitch Co - Abercrombie & Fitch's stock surged over 28% in premarket trading following a strong first quarter [3] - The retailer posted earnings of $1.59 per share on $1.1 billion in revenue, significantly surpassing estimates [3] - Although Abercrombie issued positive guidance for the current quarter, it reduced its full-year profit forecast due to an anticipated $50 million impact from tariffs [3] - Prior to this report, Abercrombie's stock was down 48.4% in 2025 [3] Group 3: Dick's Sporting Goods Inc - Dick's Sporting Goods saw its stock rise 5% in electronic trading after reporting earnings of $3.37 per share on $3.17 billion in net sales, both exceeding analyst forecasts [4] - The company reaffirmed its full-year outlook and is managing tariff challenges effectively [4] - Dick's announced plans to acquire rival Foot Locker, indicating confidence in its long-term strategy [4] - Dick's Sporting Goods has a year-to-date deficit of 23.9% [4]

Core Viewpoint - Abercrombie & Fitch's shares surged despite a lowered profit outlook due to tariffs impacting the business by $50 million, with the company adjusting its earnings per share forecast downward while raising its revenue outlook for 2025 [1][2]. Financial Performance - The company reported a net income of $80.4 million, or $1.59 per share, for the first quarter, compared to $114 million, or $2.14 per share, a year earlier [3]. - Revenue for the first quarter reached $1.10 billion, an increase of approximately 8% from $1.02 billion a year earlier, marking a record high for the fiscal first quarter [4][5]. - Earnings per share exceeded expectations at $1.59 compared to the anticipated $1.39, while revenue also surpassed forecasts of $1.07 billion [5]. Outlook Adjustments - The company revised its full-year earnings per share expectation to a range of $9.50 to $10.50, down from $10.40 to $11.40 [1]. - Abercrombie raised its 2025 revenue growth outlook to 3% to 6%, up from a previous estimate of 3% to 5% [2]. - The operating margin forecast was cut to a range of 12.5% to 13.5%, down from 14% to 15% [2]. Brand Performance - The Hollister brand led the performance with a growth of 22%, achieving its best-ever first quarter net sales, while Abercrombie brand net sales decreased by 4% compared to a 31% sales growth in 2024 [4].

Abercrombie and Fitch (ANF) is a Zacks Rank #5 (Strong Sell) despite the fact that the company beat last quarter, the company is reporting before the bell today. This article was published before the company posted the latest results. The retail sector has been plagued by the tariff tantrum that the market is facing.  This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.Description                        Abercrombie & Fitch Co. engages in the retail of appar ...

Financial Performance - First quarter net sales reached $1.1 billion, an increase of 8% year-over-year[63] - Americas net sales increased by 7% year-over-year[63, 66] - EMEA net sales increased by 12% year-over-year[63, 66] - APAC net sales increased by 5% year-over-year[63, 66] - Abercrombie Brands net sales increased by 22% year-over-year[63, 69] - Hollister Brands net sales decreased by 4% year-over-year[63, 69] - Operating margin was 9.3%, exceeding the outlook of 8-9%[63, 73] - Net income per diluted share was $1.59, above the outlook of $1.25-$1.45[63, 76] Financial Position - Cash and equivalents totaled $511 million, compared to $864 million last year[79] - Inventories increased to $542 million, up 21% from last year[85] - Total liquidity was $940 million, compared to $1.2 billion last year[82] Fiscal Outlook - The company expects net sales growth in the range of 3% to 6% for fiscal year 2025[88] - The company expects operating margin in the range of 12.5% to 13.5% for fiscal year 2025[88] - The company anticipates net income per diluted share in the range of $9.50 to $10.50 for fiscal year 2025[88]

Core Viewpoint - Abercrombie & Fitch Co. reported record first quarter net sales of $1.1 billion, reflecting an 8% increase compared to the previous year, driven by broad-based growth across regions, particularly from Hollister brands which saw a 22% increase in sales [2][5][6] Financial Performance - Net sales for the first quarter ended May 3, 2025, were $1,097,311,000, up from $1,020,730,000 in the same quarter of 2024, marking an 8% increase [4][6][7] - Operating income decreased to $101,533,000, down from $129,849,000 year-over-year, resulting in an operating margin of 9.3%, down from 12.7% [6][24] - Net income attributable to Abercrombie & Fitch was $80,413,000, compared to $113,850,000 in the prior year, with diluted earnings per share at $1.59, down from $2.14 [6][24] Segment Performance - Net sales by segment showed the following growth: Americas up 7% to $874,804,000, EMEA up 12% to $185,036,000, and APAC up 5% to $37,471,000 [4][5] - Brand performance indicated Hollister brands grew by 22% while Abercrombie brands saw a decline of 4% [2][5][7] Cash Flow and Capital Allocation - The company repurchased 2.6 million shares for approximately $200 million, representing a 5% reduction in shares outstanding [2][9] - As of May 3, 2025, the company had cash and equivalents of $511 million, down from $864 million a year prior, with total liquidity of approximately $940 million [11][9] Outlook - For the second quarter, the company expects net sales growth in the range of 3% to 5%, with an operating margin projected between 12% and 13% [12][17] - The full-year outlook anticipates net sales growth of 3% to 6% and net income per diluted share in the range of $9.50 to $10.50 [17]

Group 1 - Abercrombie & Fitch Co. is set to release its first-quarter earnings results on May 28, with expected earnings of $1.33 per share, a decrease from $2.14 per share in the same period last year [1] - The company anticipates quarterly revenue of $1.06 billion, an increase from $1.02 billion a year earlier [1] - In the fourth quarter, Abercrombie & Fitch reported adjusted earnings per share of $3.57, surpassing the analyst consensus of $3.52, with quarterly sales of $1.585 billion exceeding estimates of $1.563 billion [2] Group 2 - Analyst ratings for Abercrombie & Fitch show varied opinions, with Raymond James maintaining an Outperform rating and lowering the price target from $110 to $90 [7] - JP Morgan also maintained an Overweight rating but cut the price target from $155 to $142 [7] - UBS increased its price target from $115 to $130 while maintaining a Buy rating [7] - Barclays initiated coverage with an Equal-Weight rating and a price target of $71 [7] - Citigroup maintained a Buy rating but lowered the price target from $135 to $98 [7]

智通财经APP获悉，随着华尔街各机构纷纷准备迎接本周一系列的零售企业财报发布，Raymond James 分析师Rick Patel提醒爱芬奇(ANF.US)的投资者要为与关税相关的不利因素做好准备，并且要警惕公司 销售额可能在八个季度以来首次出现下滑的情况。 Patel引用了包括店铺客流量、线上促销活动以及谷歌趋势数据在内的行业指标，他发现有初步迹象表 明，该品牌在上一季度的销售额出现了下滑，而促销活动却逐季增加，这两方面因素都可能对公司的毛 利率造成压力。 尽管最新的季度业绩可能令人失望，但该股票今年迄今已下跌了 51%，这表明与该公司受关税影响相 关的大部分负面消息已经反映在股价中了。 凭借已有的增长和利润率提升的手段，Patel维持对爱芬奇的"增持"评级。如果业绩符合预期，他将当前 股价视为一个具有吸引力的买入点，但他将爱芬奇目标价从 110 美元下调至 90 美元，以反映更为谨慎 的预期以及过去 6 个月股价的下跌情况。 爱芬奇将于周三美股盘前发布财报——预计该公司调整后每股盈利将达 1.37 美元，销售额为 10.6 亿美 元;与去年同期相比，每股盈利为 2.14 美元，销售额为 10 亿美元。在 ...

Core Viewpoint - Abercrombie & Fitch Co. is expected to report first-quarter fiscal 2025 results on May 28, with projected revenues of $1.06 billion, indicating a 3.7% growth year-over-year, but earnings per share are anticipated to decline by 36.5% to $1.36 compared to the previous year [1][2]. Financial Performance - The consensus estimate for Abercrombie's first-quarter earnings is $1.36 per share, down from $2.14 in the same quarter last year, reflecting a 36.5% decline [2]. - The company has seen a 4.2% decrease in earnings estimates over the past week, and it has historically delivered an earnings surprise of 14% on average over the last four quarters [2][3]. - The operating margin for the first quarter is expected to be between 8-9%, a significant drop from 12.7% a year ago, with EPS guidance of $1.25-$1.45 [6]. Sales Trends - Abercrombie is experiencing a slowdown in sales growth, projecting a 4-6% increase for the first quarter of fiscal 2025, a stark contrast to the 22% growth in the same period last year [4]. - The company anticipates a 9% increase in adjusted operating expenses and a 26.4% decline in adjusted operating income for the fiscal first quarter [7]. Cost Pressures - Elevated operating and freight costs are expected to pressure margins, with the company forecasting continued margin pressure in the first half of fiscal 2025 [5][19]. - The impact of U.S. tariffs on imports from China, Canada, and Mexico is projected to cost the company $5 million in fiscal 2025 [8]. Brand Performance - Despite slowing sales growth, Abercrombie benefits from strong brand performance, with projected sales growth of 9.9% for the Hollister brand and 1.7% for Abercrombie [9]. - The company has improved store traffic through fashion trends and store optimization, enhancing the shopping experience and supporting e-commerce growth [10]. Stock Performance and Valuation - Abercrombie's shares have declined 51.3% over the past year, underperforming its industry peers, while trading at a forward P/E multiple of 6.79X, below the industry average of 17.68X [11][16]. - The stock is currently priced at $73.17, which is 62.9% below its 52-week high of $196.99 [15]. Strategic Outlook - The company has focused on rebranding and premium casual wear, which has improved brand perception and sales growth [18]. - However, the near-term outlook is challenged by cost pressures and a deceleration in sales momentum, indicating a transition out of a high-growth phase [20][21].

Group 1 - Abercrombie & Fitch (ANF) is expected to report fiscal Q1 earnings on May 28, 2025, with projected earnings of $1.34 per share and revenue of $1.06 billion, indicating a 37% decrease in earnings year-over-year but a 4% increase in sales compared to the previous year [1] - The company recorded full-year 2024 net sales of $4.95 billion, a 16% year-over-year increase, and achieved its highest operating margin in over a decade at 15% [2] - For 2025, net sales growth is projected to slow to 3%-5%, with operating margins expected to decrease slightly to 14%-15% due to trade tariff uncertainties [2] Group 2 - Historically, ANF stock has dropped 60% of the time after earnings announcements, with a median one-day decrease of 1.9% and a maximum decline of 10% [1] - Over the last five years, there have been 20 earnings data points for ANF, with positive one-day returns observed approximately 40% of the time, increasing to 50% in the last three years [6] - The median of positive one-day returns was 2.4%, while the median of negative returns was -1.9% [6]

Group 1 - Abercrombie & Fitch (ANF) is perceived as a "deep value" investment opportunity, trading at just under 7 times forward earnings [1] - The company has experienced a significant decline in its stock price, indicating potential undervaluation [1] Group 2 - The article emphasizes the importance of listening to market signals to identify investment opportunities [1]