Oppeneheimer Gives Color On Abercrombie, Peet's Coffee & Tea Following Earnings (ANF, PEET)

Abercrombie & Fitch ANF reported FY4Q10 EPS of $1.38, above consensus of $1.32 and Oppenheimer's $1.30 estimate. Revenues increased 23% to $1,149.4M, GM increased a better than expected 10 bps to 63.6%. Total inventory on hand increased 22%, a deceleration from +47% in Q3 and in line with expectations. Oppenheimer reiterates its Outperform rating given ongoing international/DTC opportunity, shuttering of unproductive domestic stores, tighter inventory controls and an emphasis on expense management and an active buyback schedule. Oppenheimer has an Outperform rating and $60 PT on ANF Peet's Coffee & Tea PEET 4Q10 EPS beat Oppenheimer's estimate as revenue was slightly below estimates, but the operating margin within the retail segment was once again the primary driver to the upside. However, the Specialty segment fell meaningfully short on margin and sales vs. estimates. Guidance for 2011 was unchanged. Oppenheimer has a Perfrom rating on PEET PEET closed Wednesday at $43 ANF closed Wednesday at $57.46