Shares of fashion retailer Abercrombie & Fitch (ANF) - Get Report dropped on Thursday after the company posted a fiscal second-quarter loss that was narrower than analysts' forecasts but provided subdued forward guidance as it continues to focus on cutting costs and recalibrating its offerings to appeal to its core target markets.
The New Albany, Ohio-based teen-oriented clothing and accessories retailer posted a fiscal second-quarter loss of $29.5 million, or 48 cents a share, vs. a loss of $2.85 million, or 6 cents a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting a loss of 53 cents a share.
Sales rang in roughly flat at $841.1 million, below the $852.3 million expected by analysts surveyed by FactSet. Comparable-store sales were flat against positive comparable sales of 3% last year, the company said.
"Trends improved throughout the second quarter, enabling us to deliver constant currency revenue growth and meet our previously-issued comp and gross profit rate outlook, while continuing to tightly manage expenses," CEO Fran Horowitz said in a statement.
"Importantly, we have had a solid start to back-to-school in the U.S. and we look forward to building on that momentum in the back half through exciting product and cohesive marketing campaigns."
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For its fiscal year, Abercrombie said it now expects sales to be in the range of flat to up 2%, with comparable-store sales in the range of flat to up 2%. The company didn't provide per-share earnings forecasts. Analysts polled by FactSet are expecting per-share earnings of 93 cents.
Shares of Abercrombie were down more than 11% at $15.13 in early trading on Thursday.
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