Abercrombie & Fitch 3Q profit falls 46 percent

The company lowered its yearly earnings outlook and gave fourth-quarter guidance below expectations. Its shares fell nearly 14 percent and briefly touched a five-year low on the news.

The New Albany, Ohio-based company's profit slid to $63.9 million, or 72 cents per share, from $117.6 million, or $1.29 per share, last year.

Revenue fell 8 percent to $896.3 million from $973.9 million a year ago.

Analysts polled by Thomson Reuters expected profit of 71 cents per share on revenue of $909 million.

Abercrombie has kept its focus on international investment and kept prices steady amid the tough economy, as other teen apparel retailers such as American Eagle Outfitters Inc. and Aeropostale Inc. have focused on value and promotion.

As a result, sales have weakened. Same-store sales, or sales in stores open at least one year, fell 14 percent overall during the quarter.

"Our third-quarter financial results reflect a pullback in consumer spending and a difficult economic environment that is having an affect on all retailers," Chairman and Chief Executive Mike Jeffries said in a statement.

Sales were also hurt by weak demand for the company's tops, including knit tops, fleeces and graphic tees. Tops for girls were the primary driver of the decrease in same-store sales, the company said, as the assortment was too focused on basics and not trendy enough.

"It is clear to us that in hindsight our female tops assortment could have been better balanced," Jeffries said.