Abercrombie & Fitch Stock Plunges After Q2 Sales Miss

Abercrombie & Fitch Co ANF reported second-quarter FY21 sales growth of 24% year-on-year and 3% from Q2 FY19, to $864.85 million, missing the analyst consensus of $869.32 million.
Hollister brand sales increased 20% Y/Y, and that of Abercrombie rose 30%.
Sales in the U.S. climbed 31% Y/Y, and EMEA rose 11%.
Digital sales constituted 44% of total sales. Digital sales fell 3% Y/Y and increased 52% from Q2 FY19.
In light of store closures related to COVID-19, the company has not disclosed comparable sales for FY21.
Gross profit rose 33% Y/Y to $563.5 million. The gross margin was 65.2%, expanded by 450 basis points Y/Y and 590 basis points versus Q2 2019.
The operating margin was 13.3%, expanded 1130 basis points from last year.
The company held $0.9 billion in cash and equivalents as of July 31, 2021.
Inventories of $416 million declined 8% Y/Y.
Net cash provided by operating activities for the six months totaled $50 million.
Adjusted EPS of $1.70 beat the analyst consensus of $0.72.
Price Action: ANF shares are trading lower by 11.65% at $35.19 on the last check Thursday.

Earnings Calendar