U.S. retailers Abercrombie & Fitch Co. (ANF) and Kohl’s Corp. (KSS) announced second-quarter results on Wednesday that exceeded analysts’ forecasts. Abercrombie & Fitch has increased its full-year 2024 outlook, whereas Kohl’s has reduced its adjusted earnings and sales growth projections for fiscal 2024.Following the earnings reports, shares of Abercrombie & Fitch decreased by $26.43 (15.86%) to trade at $140.18, while Kohl’s shares increased by $1.13 (5.74%) to trade at $20.73 on the NYSE.Abercrombie & Fitch, a specialty retailer, reported a significant increase in net income attributable to the company, which rose to $133.17 million or $2.50 per share, up from $56.89 million or $1.10 per share in the same quarter the previous year. Adjusted earnings for the quarter reached $2.50 per share, compared to $1.08 per share last year. Net sales for the quarter surged 21% to $1.13 billion from $935.35 million in the previous year, marking a 22% increase on a constant currency basis. Total company comparable sales growth stood at 18%.Analysts polled by Thomson Reuters had anticipated earnings of $2.22 per share on revenues of $1.10 billion. Typically, analysts’ estimates exclude special items.For the third quarter, Abercrombie & Fitch expects net sales growth in the low double digits compared to the fiscal third quarter 2023 level of $935 million. For fiscal 2024, the company projects net sales growth between 12% and 13%, up from the prior forecast of around 10%. Analysts are expecting revenues of $1.15 billion for the quarter and a revenue growth of 12.0% to $4.79 billion for the year.Conversely, Kohl’s reported a second-quarter net income increase to $66 million or $0.59 per share, up from $58 million or $0.52 per share in the previous year. Total revenue for the quarter, however, decreased to $3.73 billion from $3.90 billion a year earlier. Analysts had expected earnings of $0.45 per share on revenues of $3.58 billion.The department store chain’s net sales were $3.53 billion, reflecting a 4.2% decline from last year’s $3.68 billion, with comparable sales decreasing by 5.1%. Gross margin increased by 59 basis points.Kohl’s CEO, Tom Kingsbury, noted, “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, Kohl’s now forecasts adjusted earnings between $1.75 and $2.25 per share on a net sales decline of 4% to 6%, with a comparable sales decline of 3% to 5%. Previously, adjusted earnings were expected to be in the range of $2.10 to $2.70 per share, with a net sales decline of 2% to 4%. Analysts are projecting earnings of $1.56 per share on a revenue decline of 3.4% to $16.01 billion for the year.Moreover, on August 13, 2024, Kohl’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the company’s common stock, payable on September 25, 2024, to shareholders of record as of September 11, 2024.The material has been provided by InstaForex Company – www.instaforex.com
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