Teen clothing retailer Abercrombie & Fitch has today posted its fifth quarter of falling sales in a row.
Abercrombie & Fitch's like-for-like sales fell three per cent in the three months ending April 29.
However, at Hollister, the retailer's key brand, sales rose three per cent. Analysts were expecting the brand's sales to fall by 0.8 per cent.
Sales in the Abercrombie brand were the drag on the group, falling by 10 per cent as compared to the same quarter a year before.
Net sales at the group fell four per cent to $661.1m.
Why it's interesting
The Ohio-based retailer targets young, fashion-conscious consumers, but it is competing in a crowded market place. Fast fashion giants H&M and Zara have been dominating the business of turning runway fashion into affordable clothing with mass-market appeal.
Abercrombie peaked in 2007, but has been struggling to maintain its popularity in recent years, and there have been rumours that it will be snapped-up by private equity firm Cerberus Capital Management.
What Abercrombie & Fitch said
Fran Horowitz, Abercrombie & Fitch chief executive said: "While we anticipate the second quarter environment to remain promotional, we expect results to improve further in the second half of the year, as we see returns from our strategic investments in marketing and omnichannel.
"We continue to tightly manage costs and inventory, and focus on execution to position our business for sustainable growth."