Abercrombie & Fitch issues weak forecast

Teenagers aren’t opening their wallets like they once were. Abercrombie & Fitch issued a disappointing full-year forecast late Tuesday.

 

Abercrombie & Fitch also said that
revenue for its quarter that ended Nov. 2 fell 12 percent year-over-year to $1.03 billion.

Analysts polled by FactSet were anticipating $1.07 billion.

The company expects its adjusted earnings for the third quarter will come in at the higher-end of its prior guidance of 40 to 45 cents per share; analysts had forecast earnings of 40 cents per share.

Abercrombie’s sales from stores open at least a year fell 14 percent for the third quarter.

This is considered a key indicator of operating performance because it strips away recently opened or closed stores.

Abercrombie is scheduled to release its full quarterly results on Nov. 21.

THE STOCK

Abercrombie & Fitch (ANF)

Wednesday’s close:
$33.13 ▼ $5.18, or 13.52%

52-week range $30-$55

Annual dividend $0.80

Dividend yield 2.4%

Price-earnings ratio * 12

Total return 1-year -1%

3-year ** -10%

10-year ** 3%

 

Note: Total returns through Wednesday

* Trailing 12 months; ** Annualized

 

Source: FactSet, Associated Press

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