ANF - Abercrombie & Fitch Co. Non-GAAP EPS of -$0.30 misses by $0.53 revenue of $805.09M misses by $38.47M

• Abercrombie & Fitch Co. press release ( NYSE: ANF ): Q2 Non-GAAP EPS of -$0.30 misses by $0.53 .
• Revenue of $805.09M (-6.9% Y/Y) misses by $38.47M .

• FY Outlook:

• Net sales to be down mid-single-digits from $3.7 billion in 2021  vs consensus of $3.73B compared to previous outlook of flat to up 2% , driven by an assumed ongoing inflationary impact on consumer demand. The outlook also includes an estimated adverse impact of approximately 200 basis points from foreign currency.
• Operating margin in the range of 1 to 3%, down from previous outlook of 5 to 6% primarily reflecting lower sales due to an assumption of lower AURs needed to keep inventory current. Mitigating these factors will be actions to reduce certain expenses, and adjust inventory receipt levels and cadence by region in response to current market forces.
• Capital expenditures of approximately $150 million.
• Q3 Outlook:
• Net sales to be down high-single-digits to fiscal third quarter 2021 level of $905 million vs consensus of $896.01M. The level assumes a continuation of recent trends for the rest of the quarter and includes an estimated adverse impact of approximately 220 basis points from foreign currency.
• Operating income to be around break-even with the year-over-year decline driven by lower sales and an assumption of lower AURs needed to keep inventory current.
• Shares -4% PM.

For further details see: