New Stock Market Trend: A&F Realized Profit In The Two Quarter, And Shares Soared 19%

Two quarter American youth apparel

Abercrombie &Fitch Co. (NYSE:ANF) has recorded an adjusted profit, and its two major brands, Abercrombie &Fitch and Hollister, have also been improved. The latter has promoted sales data better than market expectations at a faster pace of recovery. Abercrombie &Fitch Co. (NYSE:ANF) has jumped by 19% at most.

In the two quarter of August 1st, net sales of Abercrombie &Fitch Co. declined 8.2% to 817 million 800 thousand US dollars, slightly ahead of the US $811 million 500 thousand forecast.

The negative impact of the exchange rate has been the lowest in the past four quarters, including 5 percentage points.

Same store sales recorded a 4% decline, the market expected to fall by 6%, of which Hollister decline fell from 6% in the first quarter to 1%, the market expected to fall 4.7%, while Abercrombie still fell 7%, but it was better than 9% in the first quarter, mainly due to the Abercrombie kids children's clothing series.

By market, Asia and Canada both recorded positive growth in same store sales, while in Europe, Britain, Germany and France also improved.

The group is continuing to restructure its brand of Abercrombie &Fitch, which has been sluggish. Last week, it announced the restructuring of the brand management, including the change of six executive positions.

Arthur Jeffries, executive chairman of Abercrombie &Fitch Co., who has been leading the Abercrombie &Fitch Co. since the end of last year, pointed out that the Abercrombie &Fitch brand had a heavy burden in the past.

He also said in the earnings report that the overall performance in the two quarter was better than that expected in the first quarter conference call, giving the group confidence to return to the right track.

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In the two quarter, Abercrombie &Fitch Co. Co. lost a net loss of $810 thousand, or a loss of $0.01 per share, compared with a net profit of $12 million 900 thousand or a gain of $0.17 per share during the same period last year.

Adjusted net profit decreased by 39% to 8 million 600 thousand US dollars per year, or earnings per share of US $0.12, far better than the market expected US $-0.04.

Gross margin increased by 20 basis points to 62.3%, constant.

The adjusted gross profit rate is more than 110 basis points to 62%.

Last week, the most powerful American Eagle Outfitters Inc. (NYSE:AEO) released by the three largest youth clothing retailer in the United States released its two quarter earnings report, which is still outstanding. The growth rate of same store sales in the past 13 quarters has been the fastest growth in the past 13 quarters. Net sales rose 12.2% and net profit increased by 4 times. The data exceeded market expectations.

For the strength of American Eagle Outfitters Inc., Arthur Martinez thinks that it needs to be treated individually and does not mean a rebound in the industry.

Another struggling youth clothing retailer, A ropostale Inc. (NYSE:ARO), will announce its two quarter results on Thursday.

Abercrombie &Fitch Co. (NYSE:ANF) fell 0.12% on Tuesday to $17.25, which has fallen by more than 40% as of yesterday's close. It rose 15.3% to 19.89 dollars before Wednesday's session.