- 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.
For further details see:
Abercrombie & Fitch: Q1 Earnings Miss And Guidance Slash Means Pain Ahead