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Abercrombie & Fitch Stock Plunges as Outlook Underwhelms
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Key Points
- Abercrombie & Fitch shares sank Wednesday after the apparel retailer’s current profits and full-year sales forecasts disappointed investors.
- The company believes that earnings per share ranged between $1.25 and $1.45, well below the visible Alpha consensus of $2.01.
- Abercrombie & Fitch predicts sales will rise 3% to 5% in fiscal 2025, below the 5.65% increase estimate.
Abercrombie & Fitch (Anfu) Stocks fell 12% on Wednesday after apparel retailers’ current quarterly profits and full-year sales forecasts disappointed investors.
In addition to having the same name brand, the company also saw the first quarter Earnings per share (EPS) Between $1.25 and $1.45, well below the visible Alpha consensus of $2.01, partly due to higher inventory levels.
“We have a little more carry-over list than last year and we’ve been working on selling because we’ve seen these cold temperatures in January and February,” CFO Robert Ball said.
Abercrombie & Fitch also forecasts sales to rise 3% to 5% in fiscal 2025, below the visible Alpha forecast for growth of 5.65%.
The highest estimate of Q4 results
The retailer’s net sales were $3.57 for the fourth quarter earnings per share rose 9% year-on-year to $1.58 billion. Both beat analyst estimates.
Abercrombie & Fitch’s stock has dropped to its lowest level since December 2023, losing 40% of its value in the past 12 months.
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