Abercrombie & Fitch disappoints as same-store sales plummet

 
City A.M. Reporter
ABERCROMBIE & Fitch reported comparable sales and profit far below Wall Street expectations yesterday, blaming a drop in store visits by shoppers, and the teen retailer said business will decline even more during the current back-to-school quarter.

The company said comparable sales, which include online sales and sales at stores open at least a year, fell 10 per cent in the second quarter, ended 3 August.

Analysts had expected a drop of just 2.5 per cent.

Abercrombie also issued a weak profit forecast.

The company and its rivals, Aeropostale and American Eagle Outfitters, have struggled as young shoppers appear less interested in their logo-centric clothes and more eager to shop for electronics or go to chains like Zara, Forever 21 and H&M that offer greater variety in apparel more quickly.

Overall, revenue in the second quarter fell one per cent to $945.7m, well below the $996.2m analysts expected. The one bright spot was international revenue, which rose 15 per cent.