Abercrombie & Fitch Drops After Cutting Profit Forecast
Abercrombie & Fitch Co. (ANF) declined the most in nine months after the teen retailer reduced its annual profit forecast and said comparable-store sales would be lower for the remainder of the year.
The shares fell 11 percent to $48.35 at 10:07 a.m. in New York, after earlier dropping 12 percent for the biggest intraday decline since August 2012. Abercrombie had advanced 13 percent this year through yesterday, compared with a 16 percent gain for the Standard & Poor’s 500 Index.
Earnings per share for the company’s fiscal 2013 will be $3.15 to $3.25, down from a previous projection of $3.35 to $3.45, New Albany, Ohio-based Abercrombie said today in a statement. Comparable-store sales will be “slightly down” for the rest of the year, the company said.
The net loss in the first quarter, which ended May 4, narrowed to $7.2 million, or 9 cents a share, from $21.3 million, or 25 cents, a year earlier, Abercrombie said today. Analysts (ANF) projected a loss of 5 cents a share, on average.
“The first quarter proved to be more difficult than expected on the top-line due to more significant inventory shortage issues than anticipated, added to by external pressures,” Chairman and Chief Executive Officer Mike Jeffries said in the statement.
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