Abercrombie & Fitch Co. shares sank 21.7% in Tuesday premarket trading after it swung to a first-quarter loss. The apparel retailer posted a net loss of $16.5 million, or 32 cents per share, after net income of $41.8 million, or 64 cents per share, last year. An adjusted loss of 27 cents per share was below the FactSet consensus for a profit of 2 cents per share. Sales of $812.8 million were up from $781.4 million and were the highest ever for a first-quarter sales result. Sales beat the FactSet consensus for $799.3 million. Abercrombie & Fitch experienced higher-than-expected freight and product costs with higher costs expected to last through year end, said Fran Horowitz, chief executive of the company, in a statement. Abercrombie’s brand portfolio includes the namesake and Hollister. For the second quarter, the company’s outlook is for a low single digit sales decline. The FactSet consensus is for sales of $888.4 million, implying 2.7% growth. For the year, the company is guiding for sales to be flat to up 2%. The FactSet consensus is for sales of $3.815 billion, suggesting 2.7% growth. Abercrombie & Fitch stock is down 23.3% for the year to date.
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