Abercrombie & Fitch has achieved virtually stable sales over the latest quarter, but its profits fell sharply. The American clothing company expects that import duties resulting from the Sino-American trade war will have a negative impact in the fourth quarter.
Stable turnover
Abercrombie & Fitch recorded a quarterly turnover of 863.5 million dollars (780 million euros), which is slightly higher than in the same period last year. At constant exchange rates, there would have even been a 1 % growth. United States revenue increased by 3.7 %, but internationally there was a 6.2 % decline. Operating profit amounted to 14.5 million dollars (13 million euros), a decrease of more than 60 %.
The Abercrombie brand has been less popular among young people in recent months, Reuters reports. In order to address this, the company has launched travelling pop-up stores and is partnering with popular influencers, such as YouTube star Emma Chamberlain.
For the fourth quarter, Abercrombie and Fitch expects a sales growth on a comparable basis of between 0 and 2 %. Import duties, as a result of the United States’ trade war with China, will reduce gross profit by a further four million dollars (3.5 million euros).
