Abercrombie & Fitch, Kohl's Q1 results top estimates, while Children's Place missed

U.S. retailers Abercrombie & Fitch Co. (ANF) and Kohl's Corp. (KSS) reported on Wednesday results for the first quarter that topped analysts' estimates, with Abercrombie & Fitch raising its outlook for the full-year 2023 and Kohl's affirming its guidance for fiscal 2023.

Meanwhile, The Children's Place, Inc. (PLCE) reported results that missed estimates and slashed its guidance for the full-year 2023.

Following the results, Abercrombie & Fitch shares are soaring 04.91 or 21.36 percent to trade at 27.92 and Kohl's shares are surging 1.68 or 8.72 percent to trade at 20.95 dollars on the NYSE, while The Children's Place shares are plummeting 5.74 or 24.16 percent to trade at 18.02 dollars on the NASDAQ.

Specialty retailer Abercrombie & Fitch reported net income attributable to the company of 16.57 million or 0.32 dollars per share for the first quarter, compared to a net loss of 16.47 million or 0.32 dollars per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were 0.39 per share, compared to adjusted net loss of 0.27 dollars per share last year.

Net sales for the quarter grew 3 percent to 835.99 million from 812.76 million dollars in the same quarter last year, led by 14 percent growth in Abercrombie brands. Net sales were up 4 percent on a constant currency basis. Total company comparable sales growth was 3 percent.

On average, analysts polled by Thomson Reuters expected the company to report a loss of 0.05 per share on revenues of 814.53 million dollars for the quarter. Analysts' estimates typically exclude special items.

Gross profit margin was up approximately 570 basis points from last year, primarily driven by a benefit of 760 basis points from lower freight costs and 230 basis points from year-over-year AUR growth, partially offset by 320 basis points from higher cotton and raw material costs and 100 basis points from the adverse impact from foreign currency.

Looking ahead, Abercrombie projects net sales for the second quarter to grow 4 to 6 percent from last year's level of 805 million and net sales growth of 2 to 4 percent for fiscal 2023 from 3.7 billion dollars in 2022, up from the prior outlook for a 1 to 3 percent growth.

The Street is looking for a net sales decline of 1.0 percnet to 813.27 million dollars for the quarter and net sales growth of 1.6 percent to 3.76 billion dollars for the year.

Meanwhile, department store chain Kohl's reported net income for the first quarter of 14 million or 0.13 dollars per share, compared to 14 million or 0.11 dollars per share in the prior-year quarter.

Total revenue for the quarter declined to 3.57 billion from 3.72 billion dollars in the same quarter last year.

Analysts expected a loss of 0.42 per share on revenues of $3.34 billion for the quarter.

Net sales were 3.36 billion, down 3.3 percent from last year's 3.47 billion dollars. Comparable sales decreased 4.3 percent.

Looking ahead to fiscal 2023, the company continues to expect adjusted earnings in a range of 2.10 to 2.70 dollars per share on a net sales decline of 2 to 4 percent. Analysts expect earnings of 2.32 per share on revenue decline of 1.9 percent to 16.83 billion dollars for the year.

Another specialty apparel retailer, The Children's Place reported a net loss for the first quarter of 28.83 million or 2.33 dollars per share, compared to net income of 19.83 million or 1.43 dollars per share in the prior-year quarter. Excluding items, adjusted net loss was 2.00 per share, compared to 1.05 dollars per share last year.

On average, four analysts polled by Thomson Reuters expected the company to report a loss of 1.83 dollars per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 11.2 percent to 321.64 million from 362.35 million dollars in the same quarter last year. Analysts expected revenue of 338.46 milliondollars for the quarter. Comparable retail sales decreased 8.2 percent for the quarter.

Looking ahead to the second quarter, the company expects adjusted loss in a range of 2.15 to 2.20 dollars per share on net sales between 340 million and 345 million dollars. Analysts expect a loss of 1.56 dollars per share on revenues of 358.28 million dollars for the quarter.

For fiscal 2023, the company now projects adjusted earnings in a range of 1.00 to 1.50 dollars per share on net sales between 1.575 billion and 1.590 billion dollars . Previously, the company expected adjusted earnings in the range of 2.50 to 3.00 dollars per share on net sales between 1.62 billion and 1.66 billion dollars.

The Street is looking for earnings of 2.15 dollars per share on revenues of 1.65 billion dollars for the year.(DPA)