(Abercrombie & Fitch Co.) ANF dropped more than 27% on Tuesday despite reporting net sales of $813 million in the first quarter of 2021. The sales were up 4% from the prior year and the highest since 2014.
Abercrombie & Fitch Co.’s robust quarter was clouded by its FY22 guidance. The company expects its net sales to grow 0% to 2% in FY22, from $3.7 billion in 2021. For the second quarter, net sales are estimated to fall by low-single-digits from the comparable quarter of 2021.
The company also projects an operating margin of 5%-6% in FY22, which is a downgrade from its previous outlook of a 7%-8% increase. In the second quarter, the company expects an operating margin of 3%-4%, a decline from the prior year due to higher material and freight costs.
The lowered guidance came when the company reported an adjusted non-GAAP EPS loss of $0.27 in the first quarter, down from a net income of $0.67 per share.
ANF: NYSE is down -28.21.
