Abercrombie & Fitch Tumbles on Q4 Results

Shares of retailer Abercrombie & Fitch ANF are under much pressure during Thursday's pre-market session after the company announced some fourth quarter results which did not live up to analyst estimates. Abercrombie & Fitch reported Q4 sales of $1.33 billion; analysts were expecting $1.38 billion. The retail company sees Q4 gross margin erosion by 750 basis points as comparable store sales for the same period were flat. Abercrombie & Fitch expects to report Q4 EPS between $1.10-1.15, which compares to analyst estimates of $1.55. The company cites higher input costs, mainly due to rise of cotton prices, and says the highly promotional environment of its industry is also labeled a factor for the weak numbers. Currently, shares of Abercrombie & Fitch are trading down 12% at around $41.02.