Abercrombie & Fitch shares tumble on weak outlook

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NEW ALBANY, Ohio (AP) -- Shares of Abercrombie & Fitch are tumbling before the opening bell with the retailer saying that its fourth-quarter adjusted earnings and revenue will likely disappoint Wall Street.

The company, based in New Albany, Ohio, cited higher markdowns and increased cotton costs.

Abercrombie & Fitch said that was forced to slash prices to get consumers into its stores.

The company said Wednesday that it anticipates fourth-quarter adjusted earnings of about $1.10 to $1.15 per share. That's well below expectations of $1.55, according to a poll of analysts by FactSet.

Fourth-quarter revenue at stores open at least a year was flat, with weaker-than-expected U.S. sales.

Abercrombie & Fitch Co. dropped 11 percent, or $5.26, to $41.57 in premarket trading. If shares open at that level, it would mark a 52-week low.