Teen clothing retailer Abercrombie & Fitch Co. ( ANF ) on Wednesday posted a sharp decline in first quarter earnings, sending its shares lower in premarket trading.
The New Albany, OH-based company reported first quarter net income of $3 million, or 3 cents per share, compared with $25.1 million, or 28 cents per share, in the year-ago period.
Revenue rose 10% from last year to $921.2 million.
On average, Wall Street analysts expected a smaller profit of 2 cents per share, albeit on higher revenue of $951.37 million.
Looking ahead, ANF backed its previously-announced full-year earnings outlook of $3.50 to $3.75 per share, while analysts are looking for $3.56 per share for the year.
Abercrombie & Fitch shares fell $2.90, or -6.4%, in premarket trading Wednesday.
The Bottom Line
Shares of Abercrombie & Fitch ( ANF ) have a 1.54% dividend yield, based on last night's closing stock price of $45.40. The stock has technical support in the $40-$41 price area. If the shares can firm up, we see overhead resistance around the $50-$51 price levels.
Abercrombie & Fitch Co. ( ANF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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