Abercrombie & Fitch, American Eagle take a hit from gloomy retail show
21/11/2023 15:15
(Updates)
** Shares of American Eagle Outfitters AEO.N slump as much
as 19.39% to $16.27, set for their worst day since April 2020,
while Abercrombie & Fitch ANF.N stock falls 6.07% to $67.85
** The apparel retailers raised their annual sales growth
expectations but were pressured by downbeat forecasts from a
clutch of other retailers
** "With so many retailers warning about falling demand for
discretionary goods, investors may be skeptical about American
Eagle's and Abercrombie's ability to maintain their upward
trajectories" - Insider Intelligence analyst Rachel Wolff
** AEO expects FY 2023 revenue to be up mid-single digits
vs. prior forecast of a rise in low single digits
** Company sees Q4 revenue up high-single digit vs. LSEG
estimates of a rise of 3.6%
** "Momentum has continued across the business into the
fourth quarter, driven by strong holiday assortments, engaging
marketing campaigns and solid execution," American Eagle CEO Jay
Schottenstein says
** ANF forecasts FY net sales to rise between 12% and 14%
vs. previous outlook of about 10% growth
** Expects holiday-quarter net sales growth to be up low
double digits, largely in line with est of growth of 11.6%
** YTD, ANF shares have more than tripled, while shares of
AEO are up 41.5%, as of last close
(Reporting by Annett Mary Manoj and Juby Babu)
((AnnettMary.Manoj@thomsonreuters.com))