Overview

• U.S. apparel retailer's Q1 sales up 2%, slight miss to analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company repurchased $105 mln in shares, reducing shares outstanding by 3%

Outlook

• Abercrombie & Fitch maintains full-year net sales growth outlook of 3% to 5%

• Company sees second-quarter net sales growth of 2% to 4%

• Abercrombie & Fitch expects full-year net income per diluted share of $10.20 to $11.00

Result Drivers

• AMERICAS & APAC GROWTH - Sales growth led by Americas up 3% and APAC up 24%, offsetting EMEA decline

• EMEA WEAKNESS - EMEA sales fell 10% as demand softened due to Middle East conflict, especially impacting Hollister

• ABERCROMBIE BRANDS OUTPERFORMED - Abercrombie brands grew 3% while Hollister brands were flat

Company press release: ID:nGNX2rd31b

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Miss*	$1.11 bln	$1.12 bln (11 Analysts)
Q1 Adjusted EPS	Beat	$1.47	$1.28 (11 Analysts)
Q1 Net Income		$68.12 mln
Q1 Comparable Sales Growth		-1%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Abercrombie & Fitch Co is $109.50, about 46.4% above its May 26 closing price of $74.78

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.