Abercrombie & Fitch shares slide as 1Q disappoints
NEW ALBANY, Ohio (AP) — Abercrombie & Fitch shares slid in premarket trading after the teen clothing retailer’s disappointing first quarter, when fewer people shopped in its stores.
Teen retailers like Abercrombie became popular for their logo shirts and trendy jeans, but since the Great Recession they’ve been losing favor with their core demographic. Many have shifted their spending to online shops and fast-fashion chains like Forever 21.
For the period ended April 30, New Albany, Ohio-based Abercrombie lost $39.6 million, or 59 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for a slimmer loss of 50 cents per share.
That follows Abercrombie’s first-quarter loss a year ago of $63.2 million, or 91 cents per share.
Revenue declined 3.4 percent, to $685.5 million from $709.4 million. That’s below the $705.9 million Wall Street called for.
Sales at Abercrombie stores open at least a year fell 8 percent, while the metric was flat at the company’s Hollister chain. This figure is a key indicator of a retailer’s performance because it excludes results from locations recently opened or closed.
The chain cautioned that its current quarter would be “challenging,” but anticipates better results later in the year.
Shares fell 11 percent before the market opened Thursday, to $22.43. Abercrombie stock has declined 7 percent in 2016.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ANF at http://www.zacks.com/ap/ANF
Keywords: Abercrombie & Fitch, Earnings Report