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Abercrombie Reports; Gap, Sears and Salesforce.com Sink on Earnings

Dan Berman
Hot Stock Minute
Abercrombie Reports; Gap, Sears and Salesforce.com Sink on Earnings

Abercrombie and Fitch (ANF) is down 12% after releasing a dismal earnings report at 7am. The clothing company says it lost 9-cents a share, less than the 25-cents it lost a year ago, but still almost twice as much as estimates. Revenues also missed by more than $100-million dollars. Same store sales are down 15% from a year ago. The chain says that's largely because of inventory shortages. Up until this morning, Abercrombie shares have been up 14% year-to-date.

Next is an Abercrombie competitor, Gap (GPS), which has seen its shares drift as much as 5% lower after releasing its earnings. The company beat estimates on both the top and bottom lines posting 71-cents a share on $3.73 billion in revenue. The quarter was also a marked improvement over the same period last year when earnings were 47-cents a share. The company was helped by a rise in same-store sales at its namesake Gap stores as well as Old Navy stores. Growth in Asia was also strong. Shares of the Gap are up 53% over the last year. They hit a new 52-week high on Tuesday.

Now we look at Sears (SHLD), which is down an astounding 12% on the NASDAQ at this hour. The retailer reported a whopping quarterly loss of $2.63 a share after yesterday's closing bell. That's more than $2 wider than expected. Sears cited cooler weather. The company is trying to reverse a sales slide that began back in 2005 when it merged with K-Mart. At this point the company says it may sell its service contracts unit for the cash. Prior to this morning's plunge, the stock had been on a steady climb this year, up an impressive 40%.

Finally there's Salesforce.com (CRM) which has been trading 6% lower on the NYSE. The company posted diluted earnings of 10-cents a share yesterday. That matched estimates, and the company had a slim beat on revenues, but it disappointed with guidance for the coming quarter. Salesforce.com's core product is on-demand business software, but it has made a series of acquisitions which have driven up costs. Prior to the drop we're seeing this morning, the company has been up 25% over the past year, and has been trading at about 85-times earnings.