Abercrombie & Fitch Co. (NYSE: ANF) reported its financial results for the quarter ended May 2, 2020, on Thursday before the market opens. The results missed analysts’ expectations.
The company posted a wider loss in the first quarter of 2020 due to the adverse tax impacts related to valuation allowances on deferred tax assets and other tax charges as well as material adverse impacts as a result of the COVID-19 pandemic. The top-line plunged by 34% year-over-year.
With stores reopening in the US and the EMEA regions, the company has experienced sales productivity for reopened stores of about 80% and 60%, respectively, as compared to last year’s levels. The company has seen and may continue to see, material adverse impacts as a result of the COVID-19. The company is providing a detailed outlook for Q2 of FY20 due to the impacts of the pandemic on its operations and on the overall customer demand.