Abercrombie & Fitch's Stock Slumps Disappointing Quarterly Report

Abercrombie & Fitch's stock dropped 5.8% in premarket trade Wednesday, after the teen apparel retailer reported a fiscal third-quarter profit and full-year outlook that was below expectations. For the quarter ended Nov. 1, adjusted earnings, which excludes non-recurring items, came in at $30.4 million, or 42 cents a share, down from $40.5 million, or 52 cents a share, in the year-earlier period, and below the FactSet consensus analyst estimate of 43 cents a share. Revenue fell 12% to $911 million. Same-store sales declined 10%, missing the FactSet estimate of a 9.1% drop, as its Hollister, Abercrombie Kids and Abercrombie & Fitch branded stores all fell. For the full-year, the company now expects earnings of $1.50 to $1.65, below analyst forecasts of $1.83. The stock, which closed Tuesday at the lowest level since July 2009, has lost 15% year to date, compared with a 12% gain in the S&P 500.