For the 14th straight quarter American fashion company Abercrombie & Fitch failed to publish positive results, with lower turnover for both Hollister and Abercrombie & Fitch.
Major setback in home territory
Abercrombie & Fitch’s second quarter turnover reached 783.2 million dollars (700 million euro), down 4 % compared to last year’s second quarter. The drop was the result of weaker sales for both Hollister and Abercrombie: Hollister’s turnover dropped 4 % to 420.1 million dollars (375 million euro), while Abercrombie dropped even more, 5 % to 363.1 million dollars (325 million euro). Internationally, the fashion company managed to hold its own, with level turnover (304.4 million dollars – 270 million euro). In the United States however, it experienced a 7 % drop to 478.8 million dollars (430 million euro).
Other fast fashion retailers are still a enormous problem to Abercrombie & Fitch, while its larger stores and its tourist-focused locations are underperforming. The company also suffered a 13.1 million dollar (12 million euro) net loss in its second quarter, a huge increase compared to the 0.8 million dollar (0.7 million euro) net loss in last year’s second quarter.
Abercrombie plans to shut down 60 stores in the United States, coinciding with the termination of their rental agreement. The company currently has 744 stores in the United States and 182 abroad.
