Double-Digit Earnings Growth Expected for Apparel Retailers
Analysts expect Abercrombie & Fitch’s (ANF), American Eagle Outfitters’ (AEO), Urban Outfitters’ (URBN), and Gap’s (GPS) adjusted EPS (earnings per share) to benefit from the tax reform enacted in 2017. However, the retailers may have weak margins. Analysts expect the following: Abercrombie & Fitch’s adjusted EPS to grow 21.5% to $0.79 in fiscal 2018 American Eagle Outfitters’ adjusted EPS to grow 24.1% to $1.44 in fiscal 2018 Urban Outfitters’ adjusted EPS to grow 44.6% to $2.27 in fiscal 2019 Gap’s adjusted EPS to grow 23.5% to $2.63 in fiscal 2018