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Abercrombie profits more than half

Abercrombie & Fitch has reported “disappointing” second quarter results as profits more than halved compared to the same period last year.

Net income for the 13 weeks to July 28 was $15.5m (£9.91m), compared with $32.0m (£20.45m) in the same period last year, despite net sales for the period increasing 4% to $951.5m (£608.1m).

Like-for-like sales for the quarter decreased by 10% compared to last year, with Abercrombie & Fitch dropping by 11%, and Abercrombie Kids and Hollister falling by 10%. . Total international sales, including direct-to-consumer sales, increased 31% to $303.4m.

Mike Jeffries, chief executive officer and chairman at Abercrombie & Fitch, said: “The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter.”

He added that the retailer saw a further deceleration in its international stores as well as its US stores, however its direct to consumer business posted its tenth successive quarter with a 25% rise to $127.7m (£81.61m).

The company will now reduce the number of store openings for its Hollister chain, opening 30 instead of 40 for its financial year. It will also scale back international store openings,

However Jeffries said: “Our entire organization is completely focused on improving upon the trends we have seen. There are factors beyond our control but, as a team, we believe there are opportunities to do better. We continue to be confident in the global appeal of our iconic brands.”

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