×
60 438
Fashion Jobs
MICHAEL KORS
pt Sales Supervisor
Permanent · Greater Los Angeles
NEIMAN MARCUS
Sales Manager, Handbags - Las Vegas
Permanent · Las Vegas
BLOOMINGDALE'S
Registry Consultant, Full Time - Short Hills
Permanent · Millburn
MACY'S
Asset Protection Detective, Walnut Creek Broadway Plaza - Full Time
Permanent · Walnut Creek
MACY'S
Asset Protection Detective, Valley Fair - Full Time
Permanent · Santa Clara
MACY'S
Asset Protection Detective, Valencia Town Center - Full Time
Permanent · Santa Clarita
MACY'S
Asset Protection Detective, Pentagon City - Part Time
Permanent · Arlington
MACY'S
Asset Protection Detective, Deerbrook Mall - Full Time
Permanent · Humble
MACY'S
Asset Protection Detective, Orland Square - Part Time
Permanent · Orland Park
ROSS STORES
Senior Manager, Fixture Quality
Permanent · Dublin
OLD NAVY
District Manager - Colorado South
Permanent · Lakewood
OLD NAVY
General Manager - Shops at Stonewall
Permanent · Gainesville
NORDSTROM
Assistant General Manager - Ruscello - South Coast Plaza
Permanent · Costa Mesa
MACY'S
Asset Protection Detective, South Shore Plaza - Full Time
Permanent · Braintree
TJX COMPANIES
Product Manager
Permanent · Framingham
HOMEGOODS
70118-lp Detective
Permanent · Raleigh
TJ MAXX
District Loss Prevention Manager - Los Angeles, ca
Permanent · Culver City
TJX COMPANIES
Loss Prevention Investigator (National Task Force) - Deptford, nj
Permanent · Deptford
TJ MAXX
Warehouse Supervisor
Permanent · University Park
TJX COMPANIES
Product Manager
Permanent · Framingham
TJ MAXX
Loss Prevention Detective
Permanent · Somerville
TJ MAXX
tj Maxx Loss Prevention Detective Full-Time
Permanent · Denver
By
Reuters
Published
May 24, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Abercrombie shares drop 30% as high costs dent margin forecast

By
Reuters
Published
May 24, 2022

Abercrombie & Fitch Co on Tuesday lost nearly a third of its market value after the retailer cut its annual forecasts for sales and margins and posted a surprise quarterly loss due to a surge in freight and raw material costs.




Decades-high inflation has pushed consumers to cut spending on discretionary goods such as apparel, while persistent supply chain issues, worsened by the war in Ukraine, have dented profits.

Abercrombie, which had airfreighted goods to push its products through a clogged supply chain for the key holiday season, was left with excess inventory in the quarter after the festive period.

To clear the stock, the company offered more discounts and clearance sales, which further crimped its margins in the quarter to 55.3% from 63.4% last year.

"We are in an extremely inflationary period (where)everything from food to gas is costing more and we expect those pressures to weigh on consumer confidence," Chief Executive Fran Horowitz said.

In contrast, high-end players including Ralph Lauren and French brand Chanel on Tuesday forecast upbeat 2022, as the companies cushion the impact of inflation through price increases.

Including Tuesday's losses, Abercrombie shares have fallen nearly 44% this year, extending last week's declines after major retailers including Walmart Inc and Kohl's Corp flagged weakening demand for discretionary goods.

"Without a clearer outlook on the year, let alone 2023, we believe it will be hard for share to recapture these losses," William Blair analyst Dylan Carden wrote in a note, with Abercrombie executives saying they expect things to stay the same in the current quarter.

The millennial-focused retailer expects net sales to be flat to up 2% in fiscal 2022, compared with its earlier forecast of a 2% to 4% growth. Analysts on average expect sales to increase 3.5% to $3.84 billion, according to Refinitiv IBES data.

© Thomson Reuters 2022 All rights reserved.