Executive Summary

• Abercrombie & Fitch reported 1Q17 adjusted EPS of $(0.72) compared with a loss of $0.59 in the year-ago quarter; the consensus estimate called for a loss of $0.70.
• Total revenues were $661.1 million versus expectations of $651.5 million. Comps were down 3.0%, roughly in line with expectations of a 3.1% decline. Comps at the Abercrombie brand were down 10%, while comps at the Hollister brand (including Gilly Hicks) were up 3%. Geographically, comps were down 3% in the US and down 2% in international markets.
• Management expects comparable sales to remain challenging in 2Q17 and to see improvement in trends in the back half of the year. The company expects 2Q17 to remain promotional overall.