U.S. retailers Abercrombie & Fitch Co. (ANF) and Kohl’s Corp. (KSS) reported on Wednesday results for the first quarter that topped analysts’ estimates, with Abercrombie & Fitch raising its outlook for the full-year 2023 and Kohl’s affirming its guidance for fiscal 2023.<\/p>\n
Meanwhile, The Children’s Place, Inc. (PLCE) reported results that missed estimates and slashed its guidance for the full-year 2023.<\/p>\n
Following the results, Abercrombie & Fitch shares are soaring $04.91 or 21.36 percent to trade at $27.92 and Kohl’s shares are surging $1.68 or 8.72 percent to trade at $20.95 on the NYSE, while The Children’s Place shares are plummeting $5.74 or 24.16 percent to trade at $18.02 on the NASDAQ.<\/p>\n
Specialty retailer Abercrombie & Fitch reported net income attributable to the company of $16.57 million or $0.32 per share for the first quarter, compared to a net loss of $16.47 million or $0.32 per share in the prior-year quarter.<\/p>\n
Excluding items, adjusted earnings for the quarter were $0.39 per share, compared to adjusted net loss of $0.27 per share last year.<\/p>\n
Net sales for the quarter grew 3 percent to $835.99 million from $812.76 million in the same quarter last year, led by 14 percent growth in Abercrombie brands. Net sales were up 4 percent on a constant currency basis. Total company comparable sales growth was 3 percent.<\/p>\n
On average, analysts polled by Thomson Reuters expected the company to report a loss of $0.05 per share on revenues of $814.53 million for the quarter. Analysts’ estimates typically exclude special items.<\/p>\n
Gross profit margin was up approximately 570 basis points from last year, primarily driven by a benefit of 760 basis points from lower freight costs and 230 basis points from year-over-year AUR growth, partially offset by 320 basis points from higher cotton and raw material costs and 100 basis points from the adverse impact from foreign currency.<\/p>\n
Looking ahead, Abercrombie projects net sales for the second quarter to grow 4 to 6 percent from last year’s level of $805 million and net sales growth of 2 to 4 percent for fiscal 2023 from $3.7 billion in 2022, up from the prior outlook for a 1 to 3 percent growth.<\/p>\n
The Street is looking for a net sales decline of 1.0 percnet to $813.27 million for the quarter and net sales growth of 1.6 percent to $3.76 billion for the year.<\/p>\n
Meanwhile, department store chain Kohl’s reported net income for the first quarter of $14 million or $0.13 per share, compared to $14 million or $0.11 per share in the prior-year quarter.<\/p>\n
Total revenue for the quarter declined to $3.57 billion from $3.72 billion in the same quarter last year.<\/p>\n
Analysts expected a loss of $0.42 per share on revenues of $3.34 billion for the quarter.<\/p>\n
Net sales were $3.36 billion, down 3.3 percent from last year’s $3.47 billion. Comparable sales decreased 4.3 percent.<\/p>\n
Looking ahead to fiscal 2023, the company continues to expect adjusted earnings in a range of $2.10 to $2.70 per share on a net sales decline of 2 to 4 percent. Analysts expect earnings of $2.32 per share on revenue decline of 1.9 percent to $16.83 billion for the year.<\/p>\n
Another specialty apparel retailer, The Children’s Place reported a net loss for the first quarter of $28.83 million or $2.33 per share, compared to net income of $19.83 million or $1.43 per share in the prior-year quarter.
Excluding items, adjusted net loss was $2.00 per share, compared to $1.05 per share last year.<\/p>\n
On average, four analysts polled by Thomson Reuters expected the company to report a loss of $1.83 per share for the quarter. Analysts’ estimates typically exclude special items.<\/p>\n
Net sales for the quarter declined 11.2 percent to $321.64 million from $362.35 million in the same quarter last year. Analysts expected revenue of $338.46 million for the quarter. Comparable retail sales decreased 8.2 percent for the quarter.<\/p>\n
Looking ahead to the second quarter, the company expects adjusted loss in a range of $2.15 to $2.20 per share on net sales between $340 million and $345 million. Analysts expect a loss of $1.56 per share on revenues of $358.28 million for the quarter.<\/p>\n
For fiscal 2023, the company now projects adjusted earnings in a range of $1.00 to $1.50 per share on net sales between $1.575 billion and $1.590 billion. Previously, the company expected adjusted earnings in the range of $2.50 to $3.00 per share on net sales between $1.62 billion and $1.66 billion.<\/p>\n
The Street is looking for earnings of $2.15 per share on revenues of $1.65 billion for the year.<\/p>\n
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