Abercrombie & Fitch Plummets 20% Following Q1 Earnings
Abercrombie & Fitch Co. (NYSE: ANF) earnings for the first quarter reported a net loss per diluted share at 29 cents, better than the 44-cent loss analysts expected. The company said it was adversely impacted by year-over-year changes in foreign currency exchange rates of approximately 2 cents.
Sales increased to $734 million, including the adverse impact from changes in foreign currency exchange rates of approximately $16 million or 2 percent.
Abercrombie’s same-store sales were up 1 percent, short of estimates for growth of 1.3 percent. The company sees flat comparable store sales for the second quarter. The company will also close three stores.
"We achieved our seventh consecutive quarter of positive comparable sales fueled by ongoing strength at Hollister and a return to positive comps at Abercrombie. This contributed to top-line growth, operating margin improvement and a net loss reduction compared to last year," said CEO Fran Horowitz in a press release.
“In line with our strategy, we are announcing plans to close three additional flagship locations, bringing the total to five since 2017. Except for the charges from these flagship store actions, we remain on track to achieve our previously communicated fiscal 2019 outlook and continue to lay the foundation to achieving our fiscal 2020 targets.”
Abercrombie & Fitch was trading down 23.2 percent at $19.32 per share at time of publication Wednesday morning.
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