ANF stock slipped to a new low in Thursday’s session after Abercrombie & Fitch Co. (NYSE:ANF) reported disappointing quarterly sales and warned that higher tariffs would hit profit margins over the rest of this fiscal year.
ANF Stock Falls 15%
Abercrombie & Fitch Co has been known for years as one of the leading brands for teenagers across the world, but the company has struggled a bit over the past few years. The accessories and clothing retailer announced its financial results for the second quarter today, and it proved to be a disappointment for investors. The company not only missed the sales targets for the quarter but also announced weak projections for the rest of the year.
However, what should prove to be even more of a worry for Abercrombie & Fitch as well as for its investors is the drastic deepening of the net losses for the quarter.
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Such a turn of events was soon pounced upon by investors as ANF stock sank by as much as 14% at $14.43 on Thursday, after hitting a new low of $14.18 earlier in the session.
The net losses for the quarter came in at a steep $33.1 million, which reflected loss per share of 46 cents. In the same quarter in 2018, the company had only posted a loss of $3.9 million. The loss per share was 6 cents a share in the year-ago period. The company’s drop in sales also proved to be a major disappointment as it slid from $842.4 million in the year-ago period to $841.1 million in the second quarter of 2019.
Last but not least, Abercrombie & Fitch projected that its sales for the third quarter are going to rise by only 1% and no rise in the figures for same-store sales. Both the full-year growth sales and same-store sales have been pegged at 2%. This particular update proved to be the last straw for many investors, and the slide in ANF stock price has not come as a complete surprise for most analysts.
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