Abercrombie & Fitch, which had its colorful history of catering to deep-pocketed customers recently featured in a popular Netflix documentary, has joined the ranks of major U.S. retailers that are feeling the pinch from a 40-year high in inflation.
CEO Fran Horowitz told investors on Tuesday that higher prices related to freight and raw material costs were a drag on sales, despite a strong U.S. economy overall. The brand reported a $14.8 million net loss for the first quarter and lowered its sales forecast to zero to 2 percent for the coming quarter, sending shares down 25 percent.
It’s becoming a familiar story for retailers. After two years of stimulus-fueled consumer spending, the industry’s pandemic-era upswing appears to be winding down, and many companies are pointing the finger squarely at inflation. Read more at Cheddar.