Abercrombie & Fitch same-store sales disappoint
Abercrombie & Fitch Co.
$115.09
10:59 24/04/24
Clothing retailer Abercrombie & Fitch turned in weaker-than-expected same-store sales and announced its plans to shutter three more flagship stores on Wednesday.
Abercrombie saw same-store sales rise 1% in the first quarter of its trading year, falling short of estimates on the Street for a 1.3% increase.
Net losses narrowed to $19.2m, or $0.29 per share, which was better than the net loss of $42.5m seen a year earlier and the $0.43 per share analysts had expected.
Sales improved to $734m from $730.9m a year ago, also just topping expectations for $733.4m.
However, momentum at Abercrombie's Hollister brand appeared to be decelerating. Hollister's same-store sales were up just 2%, missing expectations for 3.3%.
Looking forward, Abercrombie expects net sales to be relatively flat in the second quarter - up as much as 2%, short of analysts' estimates for 2.8% - and for the full year, the group anticipates a net sales growth of around 2% to 4%.
Abercrombie also revealed Wednesday it will close a further three flagship stores in New York, Fukuoka and Milan — taking the total number of flagship stores it has shuttered since 2017 to five.
Chief executive Fran Horowitz said: "We continue to believe in stores and are committed to delivering intimate, omnichannel brand experiences that closely align with our customers' needs."
As of 1505 BST, Abercrombie shares had tumbled 24.36% to $19.03 each.