GPS - Abercrombie shares plunge on surprise loss weak guidance (update)

Abercrombie & Fitch Co. (NYSE:ANF -30.4%) shares eroded sharply on Tuesday after reporting a surprise bottom line loss.  The New Albany, Ohio-based retailer reported non-GAAP EPS of -$0.27, missing analyst estimates by $0.36 and diving into the red unexpectedly for its first quarter. While revenue was better than anticipated, the stunning bottom line miss sent shares spiraling in pre-market trading. Shares sank over 30% at intraday lows. “We continued to reduce our promotional activity, contributing to our eighth consecutive quarter of AUR improvement,” CEO Fran Horowitz said. “This was more than offset by higher-than-expected freight and product costs.” In terms of improvement, the second quarter outlook did little to engender optimism. Net sales are now expected to fall by “low-single-digits” from the prior year, while operating margin is expected to be impacted by “higher freight and raw material costs.” “Looking forward, we expect higher costs to remain a headwind through

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Abercrombie shares plunge on surprise loss, weak guidance (update)