Executive Summary

• Abercrombie & Fitch reported 4Q15 revenues of $1.1 billion, down 0.6% but slightly above the consensus estimate. On a constant-currency basis, revenues increased by 2.0%. Comparable sales increased by 1% on a constant-currency basis, the first increase in more than three years, beating the consensus estimate of flat sales.
• The company reported adjusted EPS of $1.08 for the quarter, down 6.3% from the year-ago quarter but above the consensus estimate of $0.99. The upside was driven by strong holiday online sales, demand for the Hollister brand and the company’s shift to softer styles from logo-splashed apparel.
• For 2016, the company expects flat to slightly positive comp sales, compared with the consensus estimate of a 0.8% increase.