Abercrombie & Fitch Co. Non-GAAP EPS of $1.14 misses by $0.13, revenue of $1.16B misses by $20M

• Abercrombie & Fitch Co. press release (NYSE:ANF): Q4 Non-GAAP EPS of $1.14 misses by $0.13.
• Revenue of $1.16B (+3.6% Y/Y) misses by $20M.
• Shares -3.46% PM.

• For fiscal 2022, the company expects: Net sales to be up 2 to 4% from $3.7 billion in 2021 vs consensus of $3.73B with the U.S. continuing to outperform EMEA and APAC. We expect the increase to be driven by growth in both comparable sales and store count. Gross profit rate to be down around 200 basis points as compared to the fiscal 2021 rate of 62.3%, with 300-400 basis points of cost inflation partially offset by higher average unit retail. Operating expense, excluding other operating income, to be up in a range similar to sales of up 2 to 4% to fiscal 2021 adjusted non-GAAP operating expenses of $1.97 billion, which excluded $12 million in impairment charges. Capital expenditures of approximately $150 million.

• For the first quarter of fiscal 2022, the company expects Net sales to be up low-single-digits to fiscal first quarter 2021 level of $781 million vs consensus of $799.89M. Gross profit rate to be down around 400 basis points to fiscal 2021 rate of 63.4% reflecting $65 million of incremental freight costs compared to fiscal first quarter 2021, partially offset by improved average unit retail. Operating expense, excluding other operating income, to be up around 6% to fiscal 2021 adjusted non-GAAP operating expenses of $436 million, which excluded $3 million in impairment charges, with approximately half of the increase due to lapping COVID-related rent abatements and government assistance recognized in fiscal first quarter 2021.