Earnings Preview: Abercrombie & Fitch Co.

Abercrombie & Fitch Co. (ANF) is expected to report Q3 earnings Friday, November 13 with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 20c on revenue of $764.53M. The consensus range is 10c-27c for EPS, and revenue of $707M-$800M, according to First Call. The company's September same-store sales fell 18% and October SSS dropped 15%, both smaller declines than expected. While Abercrombie's stock price has doubled since the market began rebounding in early March, despite disappointing sales and profits,

Analyst Views

Barron's believes the stock could unravel quickly. U.S. SSS continue to deteriorate and more sales shortfalls are expected to hurt the stock price and earnings estimate. At the same time, some analysts believe international growth will fuel Abercrombie's long term growth. Michelle Tan at Goldman Sachs said accelerating international store openings could nearly double EPS growth, and there are also international openings in 2011. Credit Suisse analyst Paul Lejuez said that based on international strength, he is confident the retailer will beat expectations in Q3, Q4 and FY10. Management is expected to comment on the holiday season, as well as whether the company will offer further discounts.