Abercrombie & Fitch raises forecast - share price stumbles

The fashion retailer Abercrombie & Fitch today revised its year-end forecast upwards. Nevertheless, the stocks experienced a decline, which could be attributed to a mixed day in the stock markets. The S&P 500 recently fell by about 3%. Abercrombie shares lost about 19% and were quoted at around USD 130, thereby dampening recent positive trends since mid-December. This indicates deeper disappointment among investors. In detail, the company announced that net sales in the fourth quarter would increase by 7% to 8%, after previously expecting an increase of 5% to 7%. The forecasts for operating margins were also raised. These announcements were made ahead of a scheduled appearance by the management at an investor conference on Monday morning. Some market analysts on Wall Street remain optimistic in the long term. The analysts are generally positive about the stocks, which have risen over the past twelve months. Jeffries, which rates the stock as a "Buy" and sets a price target of USD 220—significantly higher than the Visible Alpha consensus—considers today's drop as an "opportunity.