Abercrombie shares up as results beat expectations
NEW ALBANY, Ohio (AP) — Teen-clothing retailer Abercrombie & Fitch Co. reported a wider first-quarter loss on Thursday, but its shares rose as its results beat expectations and the company reaffirmed its full-year forecast.
Abercrombie has been facing weak sales in the face of tough competition and fickle teen tastes. It has been cutting costs and closing underperforming stores to shore up results. Meanwhile, it is facing criticism from investors for longtime CEO Mike Jeffries inability to turn around results fast enough.
The retailer lost $23.7 million, or 32 cents per share, for the three month period ended May 3. That compares with a loss of $7.2 million, or 9 cents per share, a year ago.
But its adjusted loss amounted to 17 cents per share. That was slightly better than the loss of 19 cents per share that analysts surveyed by FactSet had expected.
Revenue fell 2 percent to $822 million. Analysts expected revenue of $797 million.
Revenue in stores open at least one year, a key retail metric, fell 11 percent.
The company said it still expects full year earnings of $2.15 to $2.35 per share. Analysts expect earnings of $2.34 per share.
Shares rose $1.94, or 5.5 percent, to $37.05 in late afternoon trading.