Abercrombie & Fitch (ANF) shares plummeted 19.9% in morning trading after the company reported underwhelming sales and earnings forecasts that fell short of market expectations. Despite this, ANF raised its Q4 sales growth outlook to 7-8%, a modest increase from previous predictions.
The company’s results were disappointing, particularly when compared to the same quarter in 2023, which saw double-digit growth. However, Abercrombie & Fitch wasn’t alone in experiencing weak holiday demand, with Five Below and Macy’s also underperforming.
Despite the stock’s volatility, ANF shares have seen significant price drops over the past year, including a 27% gain in August 2023. The company raised its full-year revenue guidance from 5% to 10%, a notable increase.
ANF shares are now trading at $135.76, down 15.7% from their previous close. While some analysts may view this as an opportunity to buy high-quality stocks, it’s essential to consider the broader market context and ANF’s growth prospects before making any investment decisions.
Source: https://finance.yahoo.com/news/abercrombie-fitch-anf-stock-trades-175140886.html