Key Takeaways
- Abercrombie & Fitch CEO Fran Horowitz said the clothing retailer continues to operate in “an increasingly uncertain environment.”
- The company beat profit and sales estimates for the second quarter and raised its full-year revenue outlook.
- Abercrombie shares were down 17% in early-afternoon trading Wednesday.
Abercrombie & Fitch (ANF) shares plunged Wednesday after the clothing retailer’s chief executive officer raised concerns about the economy affecting the retail market.
CEO Fran Horowitz said in the company’s second quarter financial release that “we are continuing to operate in an increasingly uncertain environment.”
The comment dampened an otherwise strong report, with Abercrombie posting adjusted earnings per share of $2.50 and revenue up 21% to a second-quarter record of $1.13 billion. Comparable store sales rose 18%. All three were better than analysts had estimated.
Company Raises Sales Guidance
Total sales at its Abercrombie stores climbed 26% to $582.4 million, and they were higher by 17% to $551.6 million at Hollister locations. Those also beat forecasts.
The company raised its full-year sales growth guidance to a range of 12% to 13%, up from the earlier 10%.
Stock Still Up More Than 50% in 2024
Abercrombie shares were down 17% in early-afternoon trading Wednesday.
One of the reasons for the stock selloff may have been high expectations for the firm, which has been showing strong gains recently.
Shares hit an all-time high in May following Abercrombie’s first quarter report, and did it again in June. While shares have lost ground since then, they remain more than 50% higher year-to-date.
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