Why Abercrombie & Fitch Stock Tanked 15.5% in the First Hour of Trading Today
Shares of teen basics retailer Abercrombie & Fitch (NYSE: ANF) dropped 15.5% as soon as trading opened on Nov. 23. That decline was precipitated by the company's third-quarter earnings release, which hit the market before the open today. It was a mixed bag, with the real problem likely tied more to investor sentiment around a key headline-grabbing topic.
Abercrombie & Fitch's third-quarter 2021 sales came in at $905 million, up 10% compared to the same quarter of 2020 and 5% compared to 2019. That's not bad at all, and suggests that the company's brands are still resonating with consumers. On the bottom line, the retailer posted adjusted earnings of $0.86 per share, up from $0.71 per share in the third quarter of 2020 and $0.37 per share the year before that. Digital sales rose 8% year over year and now make up 46% of the company's top line. So far the earnings update looks pretty good, noting that the company beat analyst expectations on both the top and bottom lines.
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Source Fool.com
