Abercrombie & Fitch Shares Plummet on Q4 Revenue Miss and Weak Guidance; Raises Dividend 14% (ANF)

Before the bell on Friday, fashion retailer Abercrombie & Fitch Co. (ANF) reported that its fourth quarter profit rose significantly, easily topping Wall Street estimates. However, revenue came in below the consensus view and the company issued a weak 2013 guidance; both factors caused share to plummet during early morning trading.

The New Albany, Ohio-based company posted a fourth quarter profit of $173.18 million, or $2.15 per share, up substantially from $19.58 million, or 22 cents per share, in the fourth quarter a year earlier. Adjusting for certain items, the company posted an EPS of $2.21. On average, analysts were expecting ANF to earn $1.96 per share in the quarter.

Revenue for the quarter was also up, rising 11% to $1.47 billion. Despite the rise, revenue missed analysts’ expectation of $1.49 billion. Total comparable store sales were down 1%.

Looking forward, ANF sees fiscal 2013 EPS between $3.35 and $3.45, shy of the analyst expectation of $3.63.

Moreover, on Thursday Abercrombie & Fitch’s Board announced that it will raise its quarterly dividend to 20 cents per share, up 14% from the previous payout of 17.5 per share. The dividend will be paid on March 19 with an ex-dividend date of February 28.

Abercrombie shares were down $2.47, or -5.04%, during Friday morning trading. The stock is down slightly over the past year.

The Bottom Line
Shares of Abercrombie & Fitch (ANF) have a dividend yield of 1.67% based on Friday’s intraday trading price of $48.04 and the company’s updated annualized dividend payout of 80 cents per share.

Abercrombie & Fitch Co. (ANF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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