Filed under: Company News, Earnings, Retail, Consumer Goods, Stocks
The teen retailer's comparable sales, which includes online sales and sales at stores open at least a year, fell 10 percent last quarter and the company said Thursday sales would drop off slightly more this quarter, which includes the back-to-school season.
It also gave a disappointing profit forecast, sending its shares down 17 percent to $38.85 in premarket trading.
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Wall Street analysts were expecting a drop in comparable sales of only 2.5 percent.The drop-off in business was felt most acutely at Abercrombie's Hollister chain, its largest, where comparable sales fell 13 percent. At its name-sake chain, comparable sales were down 6 percent.
Overall revenue fell 1 percent to $945.7 million, well below the $996.2 million analysts expected. The one bright spot was international revenue rose 15 percent.
Abercrombie (ANF) expects a profit of 40 cents to 45 cents a share for the current quarter, while analysts anticipate $1.06. The company said it wouldn't give projections beyond that, citing uncertainty around recent traffic trends.
For the second quarter that ended Aug. 3, the company said net income fell to $11.4 million, or 14 cents per share, from $17.1 million, or 20 cents per share a year earlier. Excluding items related to a project to lift profits, Abercrombie had a profit 16 cents per share, below Wall Street forecasts for 28 cents.
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