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Abercrombie & Fitch posts loss, lowers forecast

By Prachi Singh


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Image: Abercrombie and Fitch

Abercrombie & Fitch Co. net sales of 805 million dollars, were down 7 percent as compared to last year on a reported basis and down 4 percent on a constant currency basis.

Net loss per diluted share was 33 cents and 30 cents on a reported and adjusted non-GAAP basis, respectively compared to net income per diluted share last year of 1.69 dollars and 1.70 dollars on a reported and adjusted non-GAAP basis, respectively.

Commenting on the results, Fran Horowitz, the company’s chief executive officer, said: “As the global macro environment deteriorated in the second quarter, we experienced a divergence in brand performance. We expect macro headwinds to persist and have taken action to adjust receipts across brands to fuel winning categories for late fall and holiday. Our revised outlook reflects the uncertain environment for the back half.”

For fiscal 2022, the company now expects net sales to be down mid-single-digits from 3.7 billion dollars in 2021 compared to previous outlook of flat to up 2 percent, driven by an assumed ongoing inflationary impact on consumer demand. The outlook also includes an estimated adverse impact of approximately 200 basis points from foreign currency.

Operating margin is expected in the range of 1 to 3 percent, down from previous outlook of 5 to 6 percent.

For the third quarter of fiscal 2022, the company expects net sales to be down high-single-digits and operating income to be around break-even with the year-over-year decline.

Abercrombie & Fitch