Executive Summary

• Abercrombie & Fitch reported 2Q17 adjusted EPS of $(0.16), compared with $(0.25) in the year-ago quarter and beating the consensus estimate of $(0.33). Revenues were $779 million, down 0.5% year over year but beating the consensus estimate of $759 million.
• Comps decreased by 1%, ahead of the (2)% consensus estimate and up from (3)% in the first quarter. Hollister comps increased by 5%, while Abercrombie comps declined by 7%.
• The company’s guidance was for flat comps for the year, with comps flat to slightly up in the second half.