Abercrombie: earnings fail to lift investor sentiment
(CercleFinance.com) - Abercrombie & Fitch has achieved a seventh consecutive quarter of positive comparable sales, prompting a reduction in its net loss over the past quarter.
Comparable sales inched up 1% in the first quarter ended 4 May, the US teen fashion retailer said, fueled by strength at Hollister and a return to positive comps at Abercrombie.
This contributed to a margin improvement, with its operating margin coming in at 3.7%, meaning a net loss of just 0.29 dollar per share, compared to 0.62 ldollar per share ast year.
Unfortunately, the Ohio-based company announced plans to close three additional flagship locations in New York City, Fukuoka, Japan, and Milan, bringing the total to five since 2017.
Abercrombie also said it remains on track to achieve its previously communicated FY 2019 outlook, although this statement failed to lift investor sentiment.
Abercrombie & Fitch are currently crashing 25% on the NYSE.
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