Abercrombie and Fitch shares slump as sales fall 10%

People walking with Abercrombie and Fitch bags Shoppers have been turning away from the brand

Related Stories

Shares in US clothing retailer Abercrombie and Fitch fell 17.7% in Thursday trading after the release of below-forecast figures.

Known for its casual clothing for teenagers, Abercrombie said sales had fallen 10% in the second quarter of this year compared with the same period a year earlier.

Predictions from Wall Street analysts were for a 2.5% decline.

The company has also released a weak profits forecast for the third quarter.

Mike Jeffries, chief executive and chairman of the company, said in a statement that the second quarter was tougher than expected and that "continued softness" in the female business meant a weaker outlook for the rest of the year.

However, analysts cited problems with perception of the brand among its core teen market.

Rahul Sharma, of retail consultants Neev Capital, said there was fatigue with logo-dominated clothing.

"The taste of the teen market is fickle, and so this is always a difficult space for retailers, but at the heart of it, it's a problem with the offering," he said. "The appeal of the logo-heavy, preppy product is fading."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

From BBC Capital

Programmes

  • The smartphones of shoppers being tracked in a storeClick Watch

    How free wi-fi can enable businesses to track our movements and learn more about us

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.