Why Lifestyle Retailer Abercrombie & Fitch Shares Are Sliding Today
Portfolio Pulse from Shivani Kumaresan
Abercrombie & Fitch Co (NYSE:ANF) reported Q3 FY23 sales of $1.06 billion, missing estimates of $1.34 billion, but adjusted EPS of $1.83 beat estimates of $1.18. Sales grew 20% Y/Y with comparable sales up 16%. Gross profit margin expanded to 64.9%, and operating income increased to $138 million. The company updated its FY23 outlook, expecting net sales growth of 12%-14% and an operating margin of about 10%. Despite the mixed results and improved outlook, ANF shares dropped 4.12% to $69.31.
November 21, 2023 | 3:59 pm
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Abercrombie & Fitch reported lower-than-expected Q3 sales but higher EPS. The company's FY23 outlook is positive with expected sales and margin growth. Despite this, shares fell by 4.12%.
The stock price decline is likely due to the sales miss, which can overshadow the EPS beat and positive outlook in the short term. Investors may have concerns about the company's ability to meet revenue targets, leading to a negative impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100