Abercrombie & Fitch Co. (ANF) stock plummeted 14% today after the specialty retailer clothes and personal-care products posted net sales of $905 million, up 10% as compared to last year and up 5% as compared to pre-COVID 2019 third quarter net sales.
The company also reported diluted EPS of $0.77, a jump from the $0.66 figure from the third quarter of 2020.
However, gross profit rate declined 30 basis points year-over-year due to "elevated supply chain costs."
Speaking on the quarterly earnings, Fran Horowitz, CEO, said, “We were very pleased with our third quarter results. Total net sales grew 10% year- over-year, or 5% from 2019 levels."
Overall, digital net sales representing a whopping 46% of total third quarter sales.
Strong Domestic Sales
Abercrombie recorded excellent sales within the U.S., the company's largest market.
The company recorded net sales of $654 million domestically, growing 17% on a one-year and 12% on a two-year basis.
However, sales in the European and Asian theaters declined 6% and 12%, respectively.
Encouragingly, Abercrombie believes the holiday season will see increased sales figures.
Horowitz added, "The start of the holiday season has been promising. Customers have come out early to shop and have been responding well to assortments."
"We continue to actively manage through ongoing supply chain constraints, including production and delivery delays and elevated costs, and are confident that we have the product, marketing voice and omnichannel experience to surprise and delight new and existing customers throughout the fourth quarter.”