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Reuters
Published
Jun 9, 2011
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Abercrombie shares fall on CFO's Q2 comments

By
Reuters
Published
Jun 9, 2011

June 8 - Abercrombie & Fitch Co shares fell 6 percent on Wednesday after its chief financial officer said second-quarter results won't be as good as the first.

Abercrombie & Fitch
Abercrombie & Fitch store on Third Street Promenade in Santa Monica, USA (Photo: Corbis)

"Second-quarter results won't be good but they won't be inconsistent with what we've previously said," CFO Jonathan Ramsden said at a conference hosted by Piper Jaffray.

For the second quarter, the company had said it expects a mid-single digit rise in comparable sales, after a 10 percent growth in the first quarter.

"Considering Abercrombie's shares have outperformed ..., any inkling of a deceleration from the fruitful times was to be met with selling pressure," Wall Street Strategies analyst Brian Sozzi said in a note.

Abercrombie posted stellar first-quarter results, as the retailer gained market share from rivals in both domestic and international markets.

"I think the move in the stock today errs on being overdone; gross margin comments mirrored those made throughout the first quarter," Sozzi said.

Abercrombie shares were down 4 percent at $66.64 on Wednesday on the New York Stock Exchange. They had touched a low of $65.71 earlier in the day.

(Reporting by Nivedita Bhattacharjee; Editing by Sriraj Kalluvila)

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