Apparel company Abercrombie & Fitch saw its fiscal second-quarter earnings beat the expectations of analysts across the board. Still, the company’s stock slid by 17% on Wednesday due to a lower-than-expected full-year outlook.
Abercrombie & Fitch reported revenue of $1.13 billion, a 21% year-over-year increase and more than $1.10 billion expected by analysts. Its earnings per share came at $2.50 versus estimates of $2.22, while comparable store sales surged by 18%.
After a strong second quarter, the company now expects its full-year sales to record a 12% to 13% increase, compared to previously expected growth of 10%.
Abercrombie’s CEO Fran Horowitz said in a conference call that the full-year outlook increase comes in an “increasingly uncertain environment.”
“We delivered a strong first half of the year, and we are increasing our full-year outlook. Although we continue to operate in an increasingly uncertain environment, we remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses,” said Horowitz.
Despite the positives, investors were more focused on the fact that Abercrombie raised its full-year outlook only slightly and that its projected $4.3 billion in sales for 2024 is below the $4.8 billion expected by analysts.
After Wednesday’s drop of 17%, shares of Abercrombie & Fitch closed at $138.31 per share. The stock still remains 52.06% up year-to-date.