Investors pummeled clothing retailers Abercrombie & Fitch and Canada Goose Wednesday after both reported disappointing quarterly earnings.
Abercrombie's stock price tumbled about 25% to $18.76 per share in early afternoon trading, while Canada Goose shares fell roughly 28% to about $35.11.
Abercrombie, which has struggled to regain favor with shoppers after a string of public controversies in recent years, including excluding sizes for larger women, said sales at its stores fell shy of forecasts for the first quarter. The company expects that measure to remain flat in the second quarter. Abercrombie also said it will close three key locations, including its flagship store in New York for the company's Hollister subsidiary.
Abercrombie reported a loss of $19.2 million for the quarter on net sales of nearly $734 million, up marginally from $730 million in the year-ago period. The retailer's international sales fell 6%.
Canada Goose, known for its expensive goose feather parkas and jackets, missed its revenue target for the quarter and warned investors of slower growth ahead. The luxury coatmaker, which in recent years has started opening its own stores, also said it plans to open more shops, which will increase expenses.
Canada Goose reported net income of $9 million on revenue of $156.2 million, up from $124.8 million a year ago. For its full fiscal year, the company had revenue of $830.5 million, compared with $591.2 million in the year-ago period. Net income rose to $143.6 million, up from $96.1 million.
"To put this all in perspective, in just two fiscal years since going public, we have doubled our annual revenue and tripled adjusted EPS per diluted share," Canada Goose CEO Dani Reiss said in a conference call to discuss the company's earnings. "It says a lot about the strength and global demand for our brand and our ability to execute on that while also generating exceptional financial results."