- Abercrombie & Fitch (NYSE:ANF) stock is dropping alongside its Q1 earnings report
- The company posted a surprise earnings miss for the quarter
- It also cut its outlook for the full year of 2022
Abercrombie & Fitch (NYSE:ANF) stock is falling hard on Tuesday as investors react to the clothing company’s earnings report for the first quarter of 2022.
Let’s start off with ANF’s adjusted earnings per share of -27 cents. That’s nowhere close to the adjusted EPS of 8 cents that Wall Street was expecting. It’s also a negative switch compared to the company’s adjusted EPS of 67 cents from the same period of the year prior.
One positive for ANF stock is the company’s revenue of $812.76 million. That comes in above analysts’ revenue estimate of $799.31 million for the quarter. It’s also a 4% increase year-over-year from $781.41 million.
Adding fuel to the fire today is a reduced outlook from Abercrombie & Fitch. This has it expecting revenue growth to be flat to up 2% in 2022. That’s reduced from its prior revenue guidance of 2% to 4% growth.
Abercrombie & Fitch blames the reduced outlook on a couple of factors. That includes an adverse impact from foreign currency as well as the impact of inflation on customer demand.
Fran Horowitz, CEO of Abercrombie & Fitch, said the following in the Q1 earnings report.
“Looking forward, we expect higher costs to remain a headwind through at least year-end. We expect freight relief in the fourth quarter as we anniversary increased air usage last year due to the Vietnam shutdown.”
ANF stock is seeing heavy trading today on the earnings news. This has some 5 million shares on the move as of this writing. That’s above its daily average trading volume of about 2 million shares.
ANF stock is down 28.8% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
