ABERCROMBIE & FITCH CONTINUES TO STRUGGLE IN SECOND QUARTER

Ohio-based retailer Abercrombie & Fitch has reported negative second quarter results. The company’s GAAP net loss per diluted share for the quarter, which ended July 30, 2016, was $.019 per diluted share. Net sales were $783. 2 million, a decrease of 4 percent over last year, and comparable sales were also down 4 percent. By brand, net sales for Abercrombie decreased 5 percent to $363.1 million, while Hollister decreased 4 percent to $420.1 million.

“Our results for the quarter were largely in line with the expectations we set on last quarter’s earnings call,” said Arthur Martinez, the company’s executive chairman. “Flagship and tourist locations continued to account for the vast majority of the comparable sales decline as traffic remained a significant headwind. We were encouraged, however, by strong growth in our direct-to-consumer business, both domestically and internationally, and by a comparable sales recovery in the Hollister European business.”

The company is planning to open 15 new stores in fiscal 2016, including 10 in international markets, as well as six new outlet stores, primarily in the U.S. However, Abercrombie still expects a challenging environment for the second half of the year, due to decreased traffic in flagship and tourist locations, and adverse effects from foreign currency rates.