Source: Company reports
4Q15 RESULTS
Abercrombie & Fitch reported 4Q15 revenues of $1.1 billion, up 2% on a constant-currency basis and slightly beating the consensus estimate. Total comps were up 1% on a constant-currency basis, following a 6% comp decline in the year-ago quarter. On a sequential basis, comparable sales trends improved across all brands and geographies.
By brand,
Abercrombie & Fitch reported that sales decreased by 3.0%, to $509.4 million, with comp sales down 2%—which was slightly above the consensus of (2.9)%.
Hollister reported total sales of $603.6 million, up 2% from the year-ago quarter. The brand’s comp sales were up 4%, beating the consensus estimate of 2.5%.
By geography, total
US sales decreased by 2%, to $745.9 million. Comp sales were down 1%.
International sales increased by 3.0%, to $367.0 million, with comps up 6.0%.
Direct-to-consumer and omni-channel sales combined grew to approximately 28.5% of total company net sales over the quarter, compared to 27.0% in the year-ago period.
2015 RESULTS
Revenues in 2015 were $3.5 billion, a 6.0% decrease year over year but up 2.0% on a constant-currency basis. Comp sales for the year decreased by 3.0% on a constant-currency basis. Excluding onetime items, adjusted EPS was $1.12, versus $1.54 in 2014.
By brand,
Abercrombie & Fitch’s net sales for the full year decreased by 7.0%, to $1.6 billion, and
Hollister’s net sales decreased by 4.0%, to $1.8 billion. The brands’ comp sales declined by 5.0% and 10.0%, respectively.
By geography, the
US recorded sales of $2.3 billion, down 5.0%, which resulted in a comp sales decrease of 6.0%.
International sales were down 7.0%, to $1.2 billion, with comp sales down 12.0%.
Direct-to-consumer and omni-channel sales combined grew to approximately 24.0% of total company sales in 2015, up from 22.0% in 2014.
GUIDANCE
For 2016, Abercrombie & Fitch expects comp sales to be flat to slightly positive, compared with the consensus estimate of a 0.8% increase. Adverse effects from foreign currency are expected to hurt sales by $50 million.
