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Abercrombie & Fitch Q4 Results Beat View, But Dollar Tree Misses

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Apparel retailer Abercrombie & Fitch Co. (ANF) on Wednesday reported fourth-quarter results that beat analysts' expectations, while discount store operator Dollar Tree, Inc.'s (DLTR) results missed estimates.

Abercrombie & Fitch's fourth-quarter profit grew 52 percent from last year, reflecting a double-digit increase in sales and a benefit related to foreign exchange rates. Meanwhile, Dollar Tree's fourth-quarter profit more than tripled from last year, reflecting higher sales and a benefit related to the U.S. tax reform.

Fourth-quarter net income attributable to Abercrombie & Fitch was $74.21 million or $1.05 per share, up from $48.79 million or $0.71 per share in the same period last year.

The company noted that year-over-year change in foreign currency exchange rates, net of hedging, was a benefit of about $0.14 per share in the latest quarter.

Excluding items, adjusted earnings per share were $1.38, compared to $0.75 per share last year.

On average, analysts polled by Thomson Reuters expected earnings of $1.10 per share. Analysts' estimates typically exclude special items.

Net sales grew 15 percent to $1.19 billion from $1.04 billion last year. Analysts had a consensus revenue estimate of $1.16 billion.

The additional week in fiscal 2017 and changes in foreign currency exchange rates benefited fourth-quarter net sales by about 4 percent and 3 percent, respectively. Comparable sales for the quarter rose 9 percent.

For fiscal 2018, the company forecast both net sales and comparable sales to increase in low-single digits.

Dollar Tree's fourth-quarter net income was $1.04 billion or $4.37 per share, up sharply from $321.8 million or $1.36 per share in the year-ago period.

The latest quarter's results include a non-cash benefit related to the Tax Cuts and Jobs Act or TCJA of $562.0 million. The total benefit from the TCJA for the fourth quarter was $583.7 million.

Adjusted earnings were $1.89 per share, compared to $1.36 per share last year. Net sales grew 12.9 percent to $6.36 billion from $5.64 billion a year ago.

Analysts expected earnings of $1.90 per share on revenues of $6.39 billion.

For the first quarter of 2018, Dollar Tree forecast consolidated net sales to range from $5.53 billion to $5.63 billion, based on low single-digit increase in same-store sales for the combined enterprise, and earnings per share of $1.18 to $1.25.

Analysts expect earnings of $1.31 per share for the quarter on revenues of $5.6 billion.

For fiscal 2018, Dollar Tree estimates consolidated net sales between $22.70 billion and $23.12 billion, based on a low single-digit increase in same-store sales and 3.7 percent square footage growth. The company projects earnings per share to range from $5.25 to $5.60.

The Street expects the company to earn $5.90 per share for the year on revenues of $23.1 billion.

by RTTNews Staff Writer

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