Slow store traffic weighs on Abercrombie profits
Teen fashion retailer Abercrombie & Fitch has reported a worse-than-expected ten per cent drop in comparable sales in the second quarter. The company said less people visiting stores and a lack of interest in its women’s clothing was behind the fall (release).
For the year to date, comparable sales are down by 12 per cent. The company added that pre-tax income fell by a quarter to $17.4m (£11.2m), while basic earnings per share fell 29 per cent to 15 cents.
For the current quarter, Abercrombie expects a profit of 40 cents to 45 cents per share – but uncertainty regarding traffic means it would not give projections beyond that.
Chief executive and chairman Mike Jeffries said:
The second quarter was more difficult than expected due to weaker traffic and continued softness in the female business, consistent with what others have reported. In that context we are planning sales, inventory and expenses conservatively for the remainder of the year.
Shares in Abercrombie & Fitch have dropped nearly 18 per cent after a dreary set of second quarter results announced earlier. Footfall in its stores were so uncertain the teen fashion retailer declined to forecast any further ahead than the current quarter.
It’s now down to $13.85 – its lowest point since 3 July 2013.
Source: Yahoo