News Column

Abercrombie & Fitch Shares Fall

November 22, 2013

Associated Press

Abercrombie & Fitch Co. shares fell Friday after the retailer reported disappointing third-quarter revenue and said weak sales would continue.

The teen retailer expects a low double-digit percentage decline in fourth-quarter sales at stores open at least a year. This is considered a key indicator of financial performance as it strips away the impact of recently opened and closed stores.

Stifel analyst Richard Jaffe said that lackluster merchandise and weak traffic weighed on the retailer. While the company is trimming expenses and closing underperforming stores, the analyst said in a research note that Abercrombie's aesthetic of an "aspirational, New England prep-inspired teenager" is no longer relevant and he expects the company will continue to struggle.

Susquehanna Financial Group analyst Thomas Filandro said that the quarter's performance and holiday outlook don't show that the retailer has made a fundamental turn in its recovery. But he said in a research note that he is encouraged by management's heightened focus on change and kept a positive rating on the stock.

For the quarter that ended on Nov. 2, Abercrombie said Thursday that it earned 52 cents per share, excluding one-time costs, while revenue fell 12 percent to $1.03 billion. Analysts predicted earnings of 44 cents per share on revenue of $1.04 billion, according to FactSet.

The company kept its outlook for adjusted earnings of $1.40 to $1.50 per share for the current quarter. Analysts had predicted earnings of $1.55 per share.

Shares fell 82 cents, or 2.3 percent, to close at $34.15 Friday. The stock has lost 29 percent of its value this year.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Original headline: Abercrombie shares fall as weak sales continue


For more stories covering business, please see HispanicBusiness' Business Channel



Source: Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters