Abercrombie & Fitch plummets as discount-driven holiday sales pressure margins

Five Below

13/01/2025 16:42

(Updates)
    ** Shares of Abercrombie & Fitch  ANF.N  fall as much as
20.3% to $128.30 in early trade
        ** Company 
    maintains
     its operating margin outlook for the full-year, despite
raising net sales forecasts, owing to heavier discounts taken
during the holiday period to lift sales
  
    ** Expects full-year 2024 net sales of about 15%, compared
with analysts' estimates of 15.2% growth, according to data
compiled by LSEG
    ** Apparel makers American Eagle Outfitters  AEO.N , apparel
retailer Urban Outfitters and discount store operator Five Below
 FIVE.O , which gained premarket, have reversed course in the
broader market to decline around 4% to 5% on expectations of
scaled-back Fed rate cuts in 2025
    ** Shares of Lululemon  LULU.O  flat following premarket
gains after Q4 sales, profit forecast raise
        ** Shares of 
    Macy's
      M.N  down as much as 7% after projecting Q4 net sales at
lower end of prior forecast
    ** ANF and URBN rose ~70% and ~54% in 2024, while FIVE, AEO,
LULU and M fell 51%, 21%, 25% and 16%, respectively

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))