Abercrombie & Fitch Trims FY19 Sales Growth Outlook - Quick Facts

(RTTNews) - While reporting financial results for the second quarter on Thursday, Abercrombie & Fitch Co. (ANF) trimmed its sales growth guidance for the full-year 2019 and provided sales growth guidance for the third quarter.

For fiscal 2019, the company now projects net sales be in the range of flat to up 2 percent, driven by comparable sales and net new store contribution, partially offset by an adverse impact from changes in foreign currency exchange rates of approximately $45 million. Comparable sales are now projected to be in the range of flat to up 2 percent.

Previously, the company expected net sales growth of 2 to 4 percent, with comparable sales to be up in the low-single digit percentage.

For the third quarter, the company is now expecting net sales to be up about 1 percent, reflecting an adverse impact from changes in foreign currency exchange rates of approximately $10 million. Comparable sales are projected to be about flat, on 3 percent increase last year.

On average, analysts polled by Thomson Reuters expect the company to report sales growth of 1.8 percent to $3.66 billion for the year and sales growth of $882.60 million for the quarter.

On August 22, the Board of Directors declared a quarterly cash dividend of $0.20 per share on the Class A Common Stock of Abercrombie & Fitch Co., payable on September 16, 2019 to stockholders of record at the close of business on September 6, 2019.

For the second quarter of fiscal 2019, the company reported a net loss of $31.14 million or $0.48 per share, wider than $3.85 million or $0.06 per share last year. Adjusted earnings per share were $0.06 and $0.01 on a constant currency basis.

Net sales edged down to $841.08 million from last year's $842.41 million, including the adverse impact from flagship store exit charges of $0.50. Comparable sales were flat, on top of 3 percent rise last year.

The Street was looking for a loss of $0.53 per share on sales of $852.47 million.