Abercrombie & Fitch The stock was falling Tuesday after the retailer widely missed Wall Street’s earnings expectations and lowered its full-year outlook.
The stock fell more than 31% to $18.40 in premarket trading.
Adjusted fiscal first-quarter loss was 27 cents per share, 2 cents below earnings analysts’ estimates, according to data provider FactSet. Revenue for the quarter ended April was $813 million, which was higher than analysts’ expectation of $799 million.
Abercrombie’s (ticker: ANF) gross profit margin — gross profit as a percentage of net sales — came in at 55.3%, down 810 basis points from the year-ago quarter. (One basis point is 1/100th of a percentage point.)
Recent retail updates have focused on margins for markets as investors assess the extent to which store groups are able to pass along higher prices to consumers.
Last week, TJX Cos. (TJX) shares rose 7.1% after the retailer raised its prediction for adjusted pretax margin. But Target (TGT) stock fell nearly 25% after management reported disappointing quarterly results and lowered its forecast for margins for the full year.
For the full year, Abercrombie expects net sales to either match 2021 sales of $3.71 billion or increase 2%. That was lower than management’s previous outlook of 2% to 4% and analysts’ expectation of 2.7%. The company attributed this to unfavorable foreign exchange and forecast lower consumer demand due to inflation.
Abercrombie said that starting this quarter it is no longer providing a full-year outlook on the gross profit rate.
Write to Karishma Vanjani at [email protected]
Credit: www.marketwatch.com /