NEW ALBANY, Ohio (AP) — Abercrombie & Fitch says its third-quarter net income edged up as higher costs for commodities such as cotton offset higher sales of its preppy t-shirts and jeans.
But its earnings were well short of Wall Street expectations. Its shares tumbled more than 7 percent in premarket trading.
Retailers have been facing higher costs. Some have offset that by raising prices, but Abercrombie & Fitch Co. says its average unit retail price was flat during the quarter. The cost of goods sold rose 34 percent.
The New Albany, Ohio-based retailer says net income totaled $50.9 million, or 57 cents per share. That compares with $50 million, or 56 cents per share. Analysts polled by FactSet expected earnings of 72 cents per share.
Revenue rose nearly 22 percent to $1.08 billion. Analysts expected revenue of $1.07 billion.