Abercrombie & Fitch Co. slumps 16% on missing Q4 expectation

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• Abercrombie & Fitch Co. (ANF -16.8%) drops 16% on missing Q4 estimates, missed revenue estimate by $20M at $1.16B.
• Digital net sales of $556M or 48% of total net sales as compared to $475M or 40% last year.
• More bifurcation of sales:

• Company repurchased $142M worth shares during Q4.
• Non-GAAP EPS of $1.14 misses by $0.13.
• Fran Horowitz, CEO, said, “2021 is a testament to the fundamental changes we have made to strengthen our foundation and improve our profitability. For the year, we delivered: Net sales of $3.7 billion with 47% digital penetration; a double-digit AUR growth rate; reported and adjusted operating income of $343 million and $355 million, respectively, roughly 330% above 2019 levels; and a 9.6% adjusted operating margin, our highest in over a decade. In addition, by returning cash to shareholders through share repurchases, we reduced our ending share count by 15%.”
• Find more details in company presentation
• Previously (March 2): Abercrombie & Fitch Co. Non-GAAP EPS of $1.14 misses by $0.13, revenue of $1.16B misses by $20M

Comments

[David Papson]

With $800M in cash and $0 in debt, this $1.7B company is beyond cheap.

At a 7.5 PE net of cash its likes 3.5x

[Canufeelthelove]

@Grasslands17 For me the two takeaways were that for the first time since 2008, they'll be opening more stores than they close, and that the Abercrombie brand is trending. Like you said seems cheap at this price.