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Abercrombie & Fitch saw its losses grow by an astonishing 1180 % in the previous quarter, while turnover dropped by a third due to the Covid-19 crisis.
Below expectations
In this financial year’s first quarter, the company saw its losses grow almost thirteenfold to 244.15 million dollars (220 million euros), which is twice as high as expected.
Turnover went down 33 % to 485.4 million dollars (440 million euros), also far below analysts’ forecasts of 497 million dollars. The coronavirus pandemic, which caused many stores to be forcibly closed, hit the brand hard – however it is just another setback for a brand that has been struggling with downward trends for years.
Back to shopping
Almost half of all the chain’s stores worldwide are open again, but there is a delay in reopening in the United States. A&F sees strength in the fact that those US stores that have reopened, are back to 80 % of pre-corona turnovers. American youth are reportedly going back to shopping a lot faster than their counterparts in Asian countries.
Even though CEO Fran Horowitz says to be ahead of forecasts at this time, Abercrombie & Fitch has suspended its own forecasts for this financial year due to the uncertainty caused by the coronavirus.
