Nov 7, 2014 9:29 AM
Abercrombie & Fitch reports sharp drop in sales
The Associated Press
NEW YORK (AP) Abercrombie & Fitch is still having trouble getting teens to buy its clothing.
Sales fell by more than expected in September and October as fewer people headed to the mall and shoppers shunned clothing with the retailer's logo on it. Abercrombie & Fitch also reported weaker sales at its European stores, especially at its Hollister brand.
Shares slid in late morning trading Friday, touching a two-year low.
The New Albany, Ohio-based retailer has been trying to win customers back by removing logos from its clothing. It's also cutting expenses and closing some of its stores.
Abercrombie & Fitch expects adjusted third-quarter earnings of between 40 cents per share and 42 cents per share. Analysts expected 68 cents per share, according to FactSet. The company will report full results on Dec. 3.
Revenue fell 12 percent to $911.4 million in the quarter that ended on Nov. 1, below analysts' estimate of $982.4 million.
Sales at stores open at least a year fell 10 percent in the period down 7 percent in the U.S. and down 15 percent internationally. The metric is a key indicator of a retailer's health, as it excludes potentially distorting results from stores that recently opened or closed.
Shares of Abercrombie & Fitch Co. fell $4.59, or 13 percent, to $30.80 in late morning trading. They bottomed at $30.31 earlier Friday, the lowest point since 2012.