Abercrombie & Fitch Q2 Earnings Preview: What to Expect

Abercrombie & Fitch (NYSE:ANF) is set to release its Q2 earnings today.
As investors anticipate the results, analysts are predicting another strong quarter for the apparel retailer.

Last quarter, Abercrombie beat analysts' revenue estimates by 5.8%, bringing in $1.02 billion—an impressive 22.1% increase year over year. Analysts expect this trend to continue, forecasting a 16.7% year-on-year revenue growth for Q2, which would bring the total to $1.09 billion.

Expectations and Estimates

Abercrombie & Fitch has consistently surpassed Wall Street's revenue expectations, doing so all but once in the past two years. On average, the company has exceeded top-line estimates by 3.9%. This quarter, analysts are projecting adjusted earnings of $2.28 per share, fueled by strong consumer demand and effective inventory management.

The table below summarizes key financial expectations for Abercrombie & Fitch in Q2:

Analyst Sentiment and Stock Performance

Heading into Abercrombie's earnings report, analysts have been growing increasingly bullish. Over the last 30 days, there have been five upward revisions in revenue estimates. This optimism is also reflected in the stock's recent performance, with shares up 9.9% over the past month, significantly outpacing the 1.1% average gain in the apparel retail segment.

The broader apparel and footwear retail segment provides additional context. Competitors like Urban Outfitters (NASDAQ: URBN) and Boot Barn (NYSE: BOOT) have already reported their Q2 earnings, with both exceeding expectations. Urban Outfitters posted a 6.3% revenue increase, slightly beating forecasts, while Boot Barn saw a more robust 10.3% revenue growth, also surpassing estimates.

Currently, Abercrombie & Fitch has an average analyst price target of $192.5, suggesting further upside potential from its current trading price of $165.99.