Before Wednesday’s opening bell, Abercrombie & Fitch (ANF) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside ANF’s Results
Earnings
The retailer reported net income of $44.4 million, or 63 cents per share, down 32% from $66.1 million, or 85 cents per share, last year. Excluding special items, earnings fell 22% to $80.8 million, or $1.15 per share. On average, analysts expected to see EPS of $1.15.
Revenue
Revenue declined 14% to $1.12 from $1.30 billion last year. Analysts expected to see revenue of $1.17 billion.
Comparable store sales dropped 10% in the fourth quarter.
A Bumpy Road For Apparel Retailers
In its most recent earnings report, ANF said that it expects the next few months to be rough as its logo business continues to decline. The stock has already fallen 40% in the last 12 months, but it is not alone. Competitors have also fallen on hard times including Aeropostale, which is down 45% in 12 months.
Many consumers are now moving away from ANF’s brands, and shopping at cheaper alternatives. However, even the cheaper alternatives have seen sluggish sales – causing several recent bankruptcies including Wet Seal and Delia’s.
Mutual Funds to Watch
Investors interested in ANF may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FLPSX | Fidelity® Low-Priced Stock | 10.29% |
| VSCAX | Invesco SmallCapValue | 4.64% |
| VSCAX | Vanguard Small Cap Index | 2.54% |
The Bottom Line
The funds listed above allow investors to gain exposure to ANF while remaining diversified. Investors interested in ANF may also be interested in The Buckle (BKE) and The Gap (GPS).