JPSE - Abercrombie & Fitch: Q1 Earnings Miss And Guidance Slash Means Pain Ahead

May, 24 2022 05:34 PM JPMorgan Diversified Return U.S. Small Cap Equity

ANF reported Q1 earnings that missed badly on the bottom line and showcased concerning forward trends.
Inventory and cost of goods rose significantly above projections.
ANF also changed guidance and said they don’t see a meaningful increase from 2021 revenues.
The company did not adequately prepare for the supply chain crunch and fooled investors with such a drastically quick guidance reduction.
I was wrong previously. I now have a price target for ANF of $23 and a “Hold” rating with an 18-month view.

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Company Name:	JPMorgan Diversified Return U.S. Small Cap Equity
Stock Symbol:	JPSE
Market:	NYSE