U.S. retailers Abercrombie & Fitch Co.
(ANF) and Kohl’s Corp. (KSS) reported on Wednesday results for the
second quarter that topped analysts’ estimates, with Abercrombie &
Fitch raising its outlook for the full-year 2024, while Kohl’s
slashed its adjusted earnings and sales growth guidance for fiscal
2024.
Following the results, Abercrombie & Fitch shares are plunging 26.43 dollars
or 15.86 percent to trade at 140.18 dollars and Kohl’s shares are surging
1.13 dollars or 5.74 percent to trade at 20.73 dollars on the NYSE.
Specialty retailer Abercrombie & Fitch reported net income
attributable to the company soared to 133.17 million or 2.50 dollars per
share from 56.89 million or 1.10 dollars per share in the prior-year
quarter.
Excluding items, adjusted earnings for the quarter were 2.50 dollars per
share, compared to 1.08 per share last year.
Net sales for the quarter grew 21 percent to 1.13 billion from
935.35 million dollars in the same quarter last year. Net sales were also up
22 percent on a constant currency basis. Total company comparable
sales growth was 18 percent.
On average, analysts polled by Thomson Reuters expected the company
to report earnings of 2.22 dollars per share on revenues of 1.10 billion dollars
for the quarter. Analysts’ estimates typically exclude special items.
Looking ahead to the third quarter, the company expects net sales
growth in the low double-digits compared to fiscal third quarter 2023
level of 935 million dollars.
For fiscal 2024, the company now projects net sales growth of 12 and
13 percent from 4.3 billion dollars in fiscal 2023, up from the prior
forecast for a growth of around 10 percent.
The Street is looking for revenues of 1.15 billion dollars for the quarter
and revenue growth of 12.0 percent to 4.79 billion dollars for the year.
Meanwhile, department store chain Kohl’s reported net income for the
second quarter grew to 66 million or 0.59 dollars per share from 58
million or 0.52 dollars per share in the prior-year quarter.
Total revenue for the quarter declined to 3.73 billion from 3.90
billion dollar in the same quarter last year.
Analysts expected earnings of 0.45 cents per share on revenues of 3.58
billion dollars for the quarter.
Net sales were 3.53 billion dollars, down 4.2 percent from last year’s 3.68
billion. Comparable sales decreased 5.1 percent. Gross margin
increased 59 basis points.
Tom Kingsbury, Kohl’s chief executive officer, said, “During the
second quarter, our customers exhibited more discretion in their
spending, which pressured our sales even as customers transacted more
frequently. This overshadowed strong performance in our key growth
areas, including Sephora, home decor, gifting, and impulse.”
Looking ahead to fiscal 2024, the company now projects adjusted
earnings in a range of 1.75 to 2.25 dollars per share on a net sales
decline of 4 to 6 percent, with comparable sales decline of 3 to 5
percent.
Previously, the company expected adjusted earnings in the range of
2.10 to 2.70 dollars per share on a net sales decline of 2 to 4 percent.
Analysts expect earnings of 1.56 dollars per share on revenue decline of 3.4
percent to 16.01 billion dollars for the year.
On August 13, 2024, Kohl’s Board of Directors declared a quarterly
cash dividend on the Company’s common stock of $0.50 per share,
payable on September 25, 2024 to shareholders of record at the close
of business on September 11, 2024.(DPA)
