Abercrombie & Fitch Shares Rise on Q2 Profit

The chain warns that same-store sales will fall in the second half

   

Abercrombie & Fitch Shares Rise on Q2 Profit

Shares of Abercrombie & Fitch (NYSE:ANF) jumped in Wednesday trading after the company announced second-quarter earnings that exceeded its own previously lowered forecast.

The clothing chain announced income of $15.5 million during the quarter, down more than 50% from $32 million in the same period last year.

retail shopping display1 Abercrombie & Fitch Shares Rise on Q2 Profit
3 Fashion and Apparel Stocks to Buy Now

Sales increased to $951.4 million, up 4% from 2011.

EPS for the quarter was 19 cents, down from 35 cents last year, but beating the high end of the diminished forecast it issued two weeks ago by a penny.

Investors liked the news. Abercrombie & Fitch shares rose about 10%.

The company said that same-store sales fell 11% at its main stores, and 10% at its children’s outlets. Sales were also off 10% at its Hollister stores.

Company officials maintained their earlier, already reduced, profit outlook for the year. They predict earnings of between $2.50 and $2.75 a share for 2012. The company also warned that same-store sales would decline 10% during the remainder of the year.

Analysts say teen shoppers have turned to clothing rivals like Gap (NYSE:GPS), American Eagle Outfitters (NYSE:AEO) and Aeropostale (NYSE:ARO), hurting Abercrombie sales.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/abercrombie-fitch-shares-rise-on-q2-profit/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.