Abercrombie & Fitch (ANF) Stock Plunges Over 13% As It Releases Q2 Financial Results: Should You Worry?

Abercrombie & Fitch (ANF) reported second-quarter fiscal 2021 results. The company also updated its guidance for the third quarter of fiscal 2021. Abercrombie & Fitch stock plummets over 13% in the market after releasing Q2 results today, as of August 26. It is trading at $34.21. As customers started returning to stores, we saw robust sales growth in the U.S., with digital sales remaining highly penetrated. Our gross profit rate also expanded dramatically, with double-digit AUR improvement contributing to our operating margin expansion.
Net sales of $865 million for the second quarter, up 24% as compared to the same period last year. Digital net sales declined 3% compared to the prior-year quarter. Gross profit margin improved 450 basis points to 65.2% as lower promotional activities were more visible in 2021. On a reported basis, operating expense was up 9% and up 11%, respectively, as compared to the same period last year. The increase in operating expenses was primarily due to an increase in payroll expenses and a decrease in customer-facing expenses.

Robert McDowney

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