Abercrombie & Fitch's 15% Sales Plunge Sparks Steep Selloff

Abercrombie & Fitch (ANF) disclosed a deeper-than-feared first-quarter loss and a 15% plunge in same-store sales on Friday, triggering a 9% retreat in the apparel maker’s shares.

Management blamed the gloomy results on “significant inventory shortage issues,” but also forecasted full-year earnings that would trail consensus estimates.

A&F said it lost $7.2 million, or 9 cents a share, last quarter, compared with a deeper loss of $21.3 million, or 25 cents a share, a year earlier. Analysts had called for a loss of 5 cents a share.

Sales slumped 8.9% to $838.8 million, badly trailing the Street’s view of $941 million. Alarmingly, same-store sales tumbled 15%.

foxbusiness.com