Abercrombie & Fitch Co. (ANF:US), the teen- clothing retailer, fell to the lowest price in more than 19 months after reporting first-quarter revenue that missed analysts’ estimates and saying same-store sales will decline this fiscal year amid weakness in Europe.
Abercrombie retreated 12 percent to $40.11 at 9:51 a.m. in New York and traded as low as $39.46, the lowest since Oct. 6, 2010. The New Albany, Ohio-based company had lost 7 percent this year through yesterday.
The company reported sales of $921.2 million for the quarter ended April 28, according to a statement today. While rising 10 percent from a year earlier, sales missed the $953.7 million average estimate of 27 analysts’ estimates (ANF:US) compiled by Bloomberg. Abercrombie also said same-store sales will be “down by a mid-single digit percentage” for the fiscal year instead of little changed.
“While we are disappointed that European sales trends remain challenging in a very difficult macroeconomic environment, we are largely satisfied with our overall performance for the quarter in that context,” Chairman and Chief Executive Officer Mike Jeffries said in today’s statement.
Abercrombie, which got 20 percent of sales from Europe in the year ended Jan. 28, is the latest specialty retailer to take a hit as the region’s economies are roiled by the sovereign-debt crisis. Fossil Inc. (FOSL:US), owner of the namesake watch brand, plunged (FOSL:US) 38 percent on May 8, the biggest drop since 1995, after cutting its full-year earnings forecast and citing softness in Europe.
The company reported first-quarter adjusted profit of 3 cents a share, beating the average estimate of 1 cent, and left its forecast for the year unchanged at $3.50 to $3.75 a share.
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