May 24, 2022 - Economy
Abercrombie & Fitch stock spirals as inflation strikes
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Retail continued its turn for the worse Tuesday as fashion chain Abercrombie & Fitch reported an unexpected loss and lowered its sales outlook.
- The report follows disappointing news from benchmark retailers Walmart and Target, whose stocks dropped sharply last week amid higher costs and signs that consumers are worried about the economy.
By the numbers: Abercrombie's stock plunged 28.6% Tuesday after the chain posted a $16.5 million loss and downgraded its fiscal 2022 sales growth outlook from a range of 2–4% to 0–2%.
- Abercrombie said its new outlook reflects "an assumed inflationary impact on consumer demand."
The bottom line: Retailers are bracing for impact.
