The following video is from Wednesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Austin Smith and Jason Moser, discuss the top business and investing stories.
Abercrombie & Fitch's Q3 earnings are out, and they're up 40%, which has share prices up a whopping 27%. Obviously an incredible sign for A&F, right? Not exactly. In this video, the guys discuss how a pop like this can sometimes occur when earnings estimates are bleak, and the report comes in less bleak than projected. We hear about how a company facing market saturation domestically and in Europe, which has same-store sales down 3%, experienced a big pop that definitely shouldn't be an invitation for investors to get on board.