Abercrombie & Fitch Tumbles After Earnings Miss, Guidance Cut
2022.08.25 19:37
Abercrombie & Fitch (ANF) Tumbles After Earnings Miss, Guidance Cut
By Sam Boughedda
Abercrombie & Fitch Company (NYSE:ANF) shares fell Thursday after the company reported earnings for the second quarter, missing profit and revenue estimates.
The apparel company posted a loss of $0.30 per share, $0.53 worse than the analyst estimate of $0.23, with revenue coming in at $805 million versus the consensus estimate of $844.72 million.
The company said its Hollister brand was impacted by a poor macro environment as a result of inflation headwinds.
The company also lowered full-year guidance. Operating margin is now expected to be in the range of 1% to 3%, down from the previous outlook of 5% to 6%, primarily reflecting lower sales. In addition, net sales are expected to be down in the mid-single-digits from $3.7 billion in 2021 compared to the previous outlook of flat to up 2%, driven by the inflationary impact on consumer demand.
Abercrombie & Fitch shares are currently down more than 6% at $17.51 per share, slightly above its opening price of $16.08 on Thursday.
