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Abercrombie & Fitch reports second quarter profits slump

US fashion group Abercrombie & Fitch has reported sales and profits tumbled over the thirteen weeks to August 1, 2009.

The American preppy teen clothing business, which owns Abercrombie & Fitch and Hollister, reported that total company sales fell 23% to $648.5m (£396.6m) during the quarter. Like-for-like sales dropped 30%.

The group made a net loss of $26.7m (£16.3m) against a profit of $77.8m (£47.6m) during the same quarter the year before. In June the group announced that it would close its higher priced teen chain Ruehl.

Operating losses for the second quarter were $21.5m (£13.1m), inclusive of $23.6m (£14.4m) pre-tax charges associated with the exit of Ruehl.

Net sales at the Abercrombie & Fitch chain were $285.3m (£174.5m) during the quarter and like-for-like sales were down 27%. Net sales at sister chain Hollister were $274.3m (£167.7m) over the quarter while like-for-like sales fell 33%.

Abercrombie & Fitch chief executive and chairman Mike Jeffries said: ” We continued to be confronted with very challenging conditions during the second quarter . We believe we are doing the right things to address those challenges and improve our domestic business. In the meantime, we remain very encouraged by our prospects for international growth.”

Abercrombie & Fitch has one Abercrombie & Fitch store and seven Hollister branches in the UK.






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