ANF stock is recovering today after dropping earlier this week following Abercrombie & Fitch’s (NYSE:ANF) earnings report, which fell short of analysts’ expectations.
For the period ended October 31, Abercrombie & Fitch reported net sales of $863.5 million USD versus estimates of $869.3 million USD, while EPS came in at $0.23, just lagging behind the expected figure of $0.24. Most of the declines in ANF stock this week can be attributed to revenue of $863.50 million USD, which also fell short of the Street’s expectations of $868.39 million USD. Comparable same-store sales in the US remained flat, but ongoing struggles abroad hampered the struggling apparel brand’s overall performance.
“Continued U.S. momentum was offset by challenges across several of our key international markets as well as a complicated global operating environment, which weighed on overall results. Despite these challenges, we ended the quarter with a balanced inventory position and have seen good response to our new assortments as weather has turned more seasonal, giving us confidence in our product and messaging for the important holiday period,” said CEO Fran Horowitz, with ANF stock rising about 3.5% today on that renewed optimism.
International Uncertainty Hampering ANF Stock
Abercrombie & Fitch had been struggling with declining in-store traffic as consumers flock to online marketplaces with a substantially larger digital presence, as well as a shift in consumer taste away from the company’s in-house style. As a result, the clothing maker had been forced to close down several of its flagship stores, including its SoHo Hollister store in New York and its A&F store in Fukuoka, Japan. A lack of certainty regarding Brexit and trade deals in the UK have also been contributing factors in the declines in ANF stock.
Despite its earnings falling short, there is still reason for optimism for Abercrombie and its investors. With Black Friday sales already well underway and the seasonal spending spree set to continue throughout December, the gains in ANF stock could be a sign of further growth ahead in the next few weeks.
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