Fashion company Abercrombie & Fitch suffered a huge loss once more in the first quarter of 2017. Despite that, the board said there is plenty of interest for a possible acquisition.
Growth for Hollister
The company’s first quarter turnover dropped 4 % to 661 million dollars (590 million euro) and dropped 3 % on a like-for-like basis. Its net loss nearly doubled, from 38.6 to 61 million dollars (35 to 55 million euro).
However, there was also good news: Hollister achieved a 3 % like-for-like turnover growth, which easily trumped analysts’ expectations. Abercrombie’s turnover slumped 10 %, also more than what analysts had expected.
“We are encouraged by our progress across all brands, particularly in March and April as a whole, in an aggressively promotional environment. We are pleased with the performance of our largest brand, Hollister, as our strategic initiatives continue to deliver. Abercrombie comparable sales were in line with our expectations”, CEO Fran Horowitz said.
Competitors are interested
Competitor American Eagle Outfitters and private equity firm Cerberus are apparently preparing a joint bid for Abercrombie & Fitch and the acquisition news helped A&F’s share to soar 4 % on Thursday.
It is not yet 100 % clear whether the fashion company would consider a sale, but according to insiders, it has asked investment bank Perella Weinberg Partners to gauge the overall interest if it were to sell.
