• EPS: -$0.30, missed expectations by -$0.53 
• Revenue: -6.9% to $805.9M, missing by $38.47M
• CEO Fran Horowitz: “As the global macro environment deteriorated in the second quarter, we experienced a divergence in brand performance”
• “Abercrombie delivered its highest Q2 sales since 2015 and its ninth consecutive quarter of average unit retail ("AUR") growth. This was more than offset by Hollister, where we saw a greater than anticipated impact from inflation and a shift away from core categories to more fashion-driven product, contributing to lower-than-expected conversion and basket size.”
• Expects many of the macro headwinds hamperning Q2 results to persist 
• Guided down net sales to down mid-single-digits vs previous of 0-2% growth
• Operating margin: -1 to -3%, down from +5 to +6% 
• Adverse sales and inventory issues 
• Inventories grew ~41% from the prior year
• “Our revised outlook reflects the uncertain environment for the back half...as we have successfully done over the last several years, we will continue to navigate near-term challenges and reduce spend where appropriate while executing to our long-term goals.”

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