Abercrombie & Fitch Co. ANF, -5.57% fell 11% in premarket trades Thursday after the company said it lost $16.83 million, or 33 cents a share, in its second quarter, compared to a net income of $108.5 million, or $1.69 a share, in the year-ago quarter. Its adjusted loss in the latest quarter totaled 30 cents a share, compared with adjusted earnings of $1.61 a share in the year-ago quarter. Revenue dropped to $805.09 million from $864.85 million. Abercrombie & Fitch was expected to earn 22 cents a share on revenue of $843.6 million, according to analyst estimates compiled by FactSet. The company said its Abercrombie products turned in their highest second-quarter sales since 2015, but this was more than offset by its Hollister brand, “where we saw a greater than anticipated impact from inflation and a shift away from core categories to more fashion-driven product,” the company said. Looking ahead, Abercrombie & Fitch said it expects third-quarter sales to be down high-single-digits compared to the year-ago quarter result of $905 million. Analysts currently expected third-quarter sales of $896 million. Operating income will be “around break-even with the year-over-year decline driven by lower sales and an assumption of lower average unit retail needed to keep inventory current.
