Shares of apparel retailer Abercrombie & Fitch (NYSE: ANF) lost 10% out of the gate on Thursday. Like many of its peers, the company has been struggling to deal with the impact of COVID-19. In fact, Wall Street analysts had been expecting a first-quarter 2020 loss of around $1.40 a share. But when it reported earnings this morning, the results were far, far worse.
On the top line, Abercrombie saw a 34% sales decline versus the same period a year ago. Its namesake store reported a 30% revenue drop, with Hollister's sales declining 36%. Not surprisingly, the sales declines spanned the globe, with the pandemic causing countries around the world to require nonessential business to shut down amid the call for social distancing. On the bottom line, the adjusted loss per share was $3.90, well off consensus expectations. Investors were anticipating bad news, but not quite that bad. Wall Street reacted accordingly and pushed the stock lower.
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