Is Abercrombie & Fitch's Pullback a Buying Opportunity?
Abercrombie Fitch's (NYSE: ANF) stock price plunged 17% on Aug. 28 after it followed up a strong quarterly report with a cautious outlook for the rest of the year. For the second quarter of fiscal 2024, which ended on Aug. 3, the apparel retailer's net sales rose 21% year over year to $1.13 billion and exceeded analysts' estimates by $40 million. Its adjusted EPS jumped 131% to $2.50 and also cleared the consensus forecast by $0.28.
A now expects its net sales to rise 12% to 13% for the full year, which was up from its prior outlook for "about 10%" growth and in line with analysts' expectations for 12% growth. However, CEO Fran Horowitz warned that the company was still operating in "an increasingly uncertain environment" -- and those comments seem to have rattled the bulls.
Data source: Getty Images.
Source Fool.com
