May 29, 2019 / 3:32 PM / 5 months ago

BUZZ-Abercrombie & Fitch: Set for worst day in 20 yrs as Hollister slows; drags peers

(Updates)

** Apparel retailer’s shares slump ~25% as Q1 same-store sales miss and forecasts Q2 sales below expectations

** On pace for worst day in nearly two decades and erase YTD gains

** ANF’s poor results drag other apparel retailers: American Eagle Outfitters fall ~5%, Gap Inc 2%, G-III Apparel 3% and Levi Strauss 3%

** Also weighing on the sector was disappointing earnings reports from Capri Holdings and Canada Goose

** ANF to close three additional flagship locations, bringing total to five since 2017

** Company’s willingness to sacrifice even high-profile stores, if they do not generate profitable benefits in sales or in terms of driving online revenue, is prudent - GlobalData’s Neil Saunders

** ANF’s Hollister apparel main contributor for weak Q1 comparable sales, international comparable sales fall 4%

** Expects flat Q2 comparable sales vs. est of 2.3% increase

** ANF top drag on S&P 600 Apparel Retail Index , with the entire index down (Reporting by Aishwarya Venugopal in Bengaluru)

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