Abercrombie Shares Fall as Sales Trail Estimates

Tuesday, 05 Nov 2013 05:44 PM

 

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Shares of Abercrombie & Fitch Co. fell as much as 15 percent in late trading after the company posted third-quarter sales that trailed analysts’ estimates as teens restrained spending on clothing.

The shares were down 7.3 percent at $35.50 at 5:45 p.m. in New York, after earlier tumbling as low as $32.63. Shares of the New Albany, Ohio-based company had declined 20 percent this year through the close of trading today, compared with a 24 percent gain for the Standard & Poor’s 500 Index.

Comparable-store sales fell 14 percent in the quarter ended Nov. 2, Abercrombie said Tuesday in a statement. Analysts’ estimated a 13.1 percent decline, according to projections compiled by Bloomberg. Net sales slid 12 percent to $1.03 billion, trailing analysts’ $1.07 billion average estimate.

“Our results for the third quarter reflect continued top- line challenges, with overall spending among younger consumers remaining weak,” Chief Executive Officer Mike Jeffries said in the statement.

Abercrombie also said it plans to close all of its standalone Gilly Hicks stores by the end of the first quarter of its fiscal 2014. The closings will result in pretax charges of about $90 million to $100 million, the company said.

Abercrombie plans to release full third-quarter results on Nov. 21.

© Copyright 2014 Bloomberg News. All rights reserved.

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