Investors hammered Abercrombie & Fitch (NYSE:ANF) shares after the company offered quarterly earnings guidance that badly missed Wall Street forecasts.
The clothing retailer announced late Wednesday that it anticipated EPS of between 15 cents and 18 cents for the second quarter, which ended on July 28. That was roughly half of the 32 cents a share that analysts were looking for, Reuters reported.
Abercrombie & Fitch shares plummeted more than 15% in Thursday midday trading.
Company officials said its sales were being hurt by a “challenging” economic environment in the U.S. and in Europe.
Sales at stores open more than a year dropped 10% during the quarter, compared to last year, the second straight quarterly decline. Inventories jumped 20%.
Not all clothing retailers are facing similar struggles. American Eagle Outfitters (NYSE:AEO) announced yesterday that it was increasing its second-quarter earnings outlook on rising sales. Despite the improved forecast, American Eagle shares fell about 2% in Thursday midday trading.