Abercrombie & Fitch Lifts Its Outlook—And Its Stock Drops | Global News Avenue

Clothing retailer Abercrombie & Fitch raised its year-end outlook today. Regardless, its stock price is falling.

Some of this may be attributed to An uncertain day for the stock marketthe S&P 500 recently fell about 3%. But the size of Abercrombie’s (ANF) – which recently fell about 19% to around $130, erasing a recent rally that began around mid-December – suggests further investor disillusionment.

Details: Abercrombie told investors it expects net sales to rise 7% to 8% in the fourth quarter, up from an earlier forecast of 5% to 7%. (Among other things, it raised its guidance for quarterly operating margin.)

Investors may expect a bigger upside surprise or longer-term update. Analysts expect quarterly revenue growth of about 7%, according to Visible Alpha data. The preview comes ahead of management’s scheduled appearance at an investor conference Monday morning.

Some on Wall Street believe the long-term outlook remains good. Analysts are generally bullish on the stock, which has been rising over the past 12 months, with Jeffries giving the stock a “buy” rating and a price target of $220, which is well above the Visible Alpha consensus, saying today The stock price fell as an “opportunity”.