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Abercrombie & Fitch Stock Slumps After Beat-And-Raise Quarter. Here's Why

Abercrombie & Fitch (ANF) stock is tumbling Wednesday, even as the retailer's Q2 results came in higher than expected and it raised its full-year forecast.

The company reported a loss of $0.45 per share, but adjusted earnings of $0.37 per share were well ahead of estimates for $0.19. Revenue increased 16% to $1.02 billion, above expectations for $986 million. Same-store sales grew 7%.

ANF raised its full-year adjusted EPS estimate to $2.35 to $2.40, up from a previous range of $2.10 to $2.20.

However, investors are focusing on the company's guidance for Q3 and full-year 2023. ANF expects Q3 adjusted EPS to be in the range of $0.54 to $0.62, compared to a prior estimate of $0.70 to $0.80. It sees FY23 adjusted EPS of $2.35 to $2.40, up from its previous guidance for $2.10 to $2.20.

The stock is down about 7% on the news.