Abercrombie tanks after same-store sales miss
- Abercrombie & Fitch beat on profits but missed on comparable sales.
- Shares of plunged more than 10% in pre-marketing trading.
- Watch Abercrombie & Fitch trade in real time here.
Abercrombie & Fitch dropped more than 10% in pre-market trading omn Thursday after the company missed on comparable sales.
The retailer said Thursday that its second-quarter sales totaled $842.4 million, edging out the $841.4 million Wall Street consensus, according to Bloomberg data. After excluding some pre-tax gains, the company earned $0.06 per share, topping the loss of $0.04 that was anticipated. Year-over-year changes in foreign currency exchange rates, net of hedging, was a benefit of approximately $0.01 per diluted share, according to the company.Meanwhile, comparable sales increased 3%, but analysts were expecting growth of 3.7%.
"We are pleased with our second quarter performance, capping off a strong first half of the year," said CEO Fran Horowitz in the press release.
"During the second quarter, we delivered both top and bottom line growth, while continuing to invest in the transformation of our business. Our results reflect another quarter of profit improvement fueled by comparable sales growth across both brands, gross margin expansion and expense leverage as we continue to execute our playbooks. Hollister continued its momentum with another quarter of strong sales growth and Abercrombie posted its third consecutive quarter of positive comparable sales, led by strength in the U.S."
Shares of Abercrombie & Fitch were up 35% through Wednesday this year.