Abercrombie & Fitch Announces Dismal 1st Quarter Earnings
Weeks after announcing steps toward an image overhaul, Abercrombie & Fitch has posted a disappointing first quarter earnings report that fell short of already feeble expectations. Same-store sales were down 9% domestically and 7% overseas. And the company announced a loss per share of $0.91, up from $0.32 one year earlier. A&F, once a magnet for teen shoppers, reported a total loss of $63.2M compared to $23.7M in 1Q14.
A&F has struggled to stay relevant to fickle young shoppers increasingly drawn to "fast fashion" options like H&M. The company has also put a stop to some of its more provocative marketing techniques, including a racy quarterly catalogue (once photographed by Bruce Weber) and, in the case of its cheaper, beachy Hollister offshoot, scantily clad young men greeting customers at the door. Hollister suffered less dramatic losses than A&F (same-stores were down 6%), but in a commentary on overall problems, some of the briskest sales there were of items devoid of the brand's bird logo.
