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Abercrombie & Fitch falls out of fashion

August 2, 2012: 1:40 PM ET

Shares of Abercrombie & Fitch (ANF) were being dissed by investors Thursday after the teen retailer issued disappointing guidance for its second quarter.

The company blamed challenging "macroeconomic conditions" for an expected slowdown in sales growth. Abercrombie, once considered a must-have by trendy teens, has had a rough time since last year. No one is suggesting that last November's lawsuit by Mike "The Situation" Sorrentino of MTV's "Jersey Shore" is to blame, but the retailer has yet to snag a high profile spokesperson.

StockTwits users seem to think Abercrombie has passed its peak.

nickgweezy: The massive drop in $ANF is a lot simpler than earnings. Nobody wears Abercrombie anymore!

Just like high school, if you're not part of the cool crowd, you'll quickly find yourself outside the pack.

retail_guru: Virtually all #retail reports confirm July was very good month $AEO $TJX $M $GPS $LTD$COST all shine. $ANF stand-out dog. Clearly specific

Abercrombie is blaming Europe's problems, which has some merit, given that the debt crisis there is looking like it will get worse before it gets better. But it's also not the only retailer bucking up against that challenge.

And much like your stock portfolio, being a diversified retailer offers a buffer.

Anne1018: $ANF is more proof: Specialty retail is where love goes to die. There's never only one "dip".

frotuss: $ANF blaming the macro, needs to look at $GPS

ldrogen: $GPS at a 10 year high on sub 7% YOY revenue growth, i don't get it

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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