Despite promising results, the future looks gloomy for Abercrombie
One of the largest American lifestyle retailers, Abercrombie & Fitch, posted the Q2 earnings. Upon the release, the markets were impressed.
After posting a net income of $5.5 million, or 9 cents per share, the company reported that compared to last year’s figures, sales dropped from $841.1 million to $698.3 million. It managed to beat the $658 million consensus.
During the same time last year, it reported a loss of $31.1 million, or 48 cents/share.
The retailer reported a 56% increase in digital sales to $386 million.
Despite the promising results, #Abercrombie & Fitch expects the Q3 net sales to drop between 15%- 20% compared to the same time last year. Given the uncertainty surrounding the #COVID-19 #pandemic, the company didn’t provide any further guidance.
Following the report, Abercrombie & Fitch stock price gained over 9%. Year-to-date, it lost 35.6%, while USA500 added 7.7%.
Sources: marketwatch.com, finance.yahoo.com