Abercrombie posts quarterly loss on dismal sales

By @ibtimes on

Abercrombie & Fitch Co reported a quarterly loss versus a year-earlier profit as sliding sales pummeled the teen retailer.

The company recorded a net loss of $26.7 million, or 30 cents a share, in the second quarter ended August 1, compared with a net profit of $77.8 million, or 87 cents a share, a year earlier.

As recently as a year ago, Abercrombie was the most popular clothing store in the mall among teens and college-age students, but as the downturn deepened, rivals with cheaper prices such as Aeropostale to Forever 21 cut into market share.

Revenue fell 23 percent to $648.5 million.

Shares fell 5 cents to $32.96 in premarket trading.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Derek Caney)

Join the Discussion