Why Abercrombie & Fitch Stock Plunged on Thursday

Shares of Abercrombie & Fitch (NYSE: ANF) were trading down 13.5% at 10:19 a.m. EDT on Thursday after the company delivered fiscal second-quarter financial results that missed the consensus estimate for sales. It posted a 24% increase on the top line, but sales of $865 million came in shy of the $879 million expected.

However, the bottom line looked much stronger, with non-GAAP (adjusted) earnings per share of $1.70 significantly beating estimates that called for $0.77. Adjusted EPS was also much higher than the year-ago quarter's $0.23, although the company said that it benefited from a $0.53 increase in income tax valuation allowances and a statutory rate change on the valuation of deferred tax assets.

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Source Fool.com