Several US retail stocks plummeted Monday after failing to meet analysts’ expectations, despite reporting record holiday sales. Abercrombie & Fitch (ANF) stock tumbled 15.7% after updating its Q4 net sales growth outlook, which only matched previous forecasts. Urban Outfitters (URBN), on the other hand, reversed its losses after reporting a 10% increase in total company revenue during the holiday season.
ANF now expects Q4 net sales to rise 7%-8%, up from its previous range of 5%-7%. The retailer maintained its operating margin and tax rate outlooks for Q4 and the year. Despite this, analysts still expect Q4 sales to grow 15.2% at full-year revenue growth.
Urban Outfitters’ total company revenue increased 10% during the holiday season, driven by a 5% increase in retail sales. The company’s Anthropologie brand saw comparable sales increase 10%, while Free People’s sales rose 9%. Urban’s Nuuly rental clothing business saw net sales jump 55%.
Meanwhile, American Eagle (AEO) reported Q4 comparable sales are up in the low single-digits and tracking ahead of its recent guidance. The company expects to deliver $135 million in Q4 operating profit.
US retail stocks have seen a mixed performance so far this week.
Source: https://www.investors.com/news/abercrombie-and-fitch-urban-outfitters-american-eagle-outlook