Moody’s Vice President and senior credit officer Charlie O’Shea provides insight into recent retail earnings reports and bankruptcy filings.
Abercrombie & Fitch Co. reported a wider-than-expected adjusted loss for the first quarter as the Covid-19 pandemic led the company to shut its stores during the period.
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The apparel retailer posted a loss of $244.1 million, or $3.90 a share, compared with a loss of $19.2 million, or 29 cents a share, in the comparable quarter last year. It booked asset-impairment charges of 62 cents a share and tax effect of $1.45 a share.
Abercrombie & Fitch Co. store in San Francisco, California, U.S.. (David Paul Morris/Bloomberg via Getty Images).
Adjusted losses were $3.29 a share, wider than the $1.39 a share analysts polled by FactSet had expected
Sales fell to $485.4 million from $734 million in the year-ago period. Analysts were looking for $497.3 million. Digital sales rose about 25%, with acceleration in mid-March through April and also May, Chief Executive Fran Horowitz said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ANF | ABERCROMBIE | 12.14 | -0.91 | -6.97% |
The company said half of its stores are open, and that it continues to reopen stores globally.
Abercrombie & Fitch said it isn’t providing detailed guidance for the second quarter and full year.
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By the end of the first quarter, the company had inventories of $427 million, down 1% from the year-ago period.
