Abercrombie’s Q3 Earnings Miss as Margins Fall; Shares Tumble (ANF)


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Teen clothing retailer Abercrombie & Fitch Co. ( ANF ) on Wednesday posted lower-than-expected third quarter earnings, sending its shares sharply lower in premarket trading.

The New Albany, OH-based company reported third quarter net income of $50.9 million, or 57 cents per share, compared with $50 million, or 56 cents per share, in the year-ago period.

On average, Wall Street analysts expected a much higher profit of 71 cents per share.

Abercrombie noted that higher costs cut into its margins during the latest quarter. Gross margin fell to 60.1% from 63.7% last year.

Earlier in November, the company pre-released quarterly sales results of $1.08 billion, a 21% gain from the year-ago period.

Abercrombie shares plunged $5.80, or -10.4%, in premarket trading Wednesday.

The Bottom Line
Shares of Abercrombie & Fitch ( ANF ) have a 1.26% dividend yield, based on last night's closing stock price of $55.70. The stock has technical support in the $50 price area. If the shares can firm up, we see overhead resistance around the $60-$64 price levels.

Abercrombie & Fitch Co. ( ANF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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