Abercrombie & Fitch stock plummets more than 30%, headed towards biggest ever one-day decline
Abercrombie & Fitch Co. (ANF) shares sank more than 30% in Tuesday trading, en route to the stock's biggest one-day decline. The clothing and accessories retailer reported first-quarter results during premarket hours; it swung to a loss and gave guidance below Street expectations. "Given that promotional activity remains very subdued, this underscores the serious inflationary pressures impacting Abercrombie & Fitch, especially from higher freight and manufacturing and materials costs," wrote Neil Saunders, managing director at GlobalData. "Management's assertion that these headwinds are likely to remain for the next two quarters is, in our view, an unfortunate but accurate reflection of reality. However, it will spook investors who had been hoping for margin gains." Abercrombie dragged American Eagle Outfitters Inc. (AEO) down with it, with shares of American Eagle falling 9.1% in Tuesday trading. American Eagle is scheduled to report first-quarter earnings on Thursday before the opening bell. Abercrombie stock is down 45.6% for the year to date.
(END) Dow Jones Newswires
May 24, 2022 14:00 ET (18:00 GMT)
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