Abercrombie's inventory problem

I like using popular companies like Abercrombie and Fitch in classroom discussions. Today the company reported that its first quarter earnings increased 33% over the prior year's quarter. This would seem like excellent news and student's would probably think that the stock price would go up, however here is the 2-day chart:


Abercrombie's price performance

Here is Abercrombie's unaudited partial balance sheet at the end of the quarter:
Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)

(unaudited)
ASSETS April 30, 2005 January 29, 2005

Current Assets
Cash and Cash Equivalents $136,578 $350,368
Marketable Securities $177,174 -
Receivables 32,284 26,127
Inventories 227,205 211,198
Store Supplies 38,944 36,536
Other 27,844 28,048

Total Current Assets 640,029 652,277

No specific details are provided in the press release, but it is interesting that a $16 million dollar increase in inventory can result in a 15% stock price decrease.