Abercrombie & Fitch still underperforms | RetailDetail

Abercrombie & Fitch still underperforms

Abercrombie & Fitch still underperforms

American fashion retailer Abercrombie & Fitch, once popular with teenagers, has completely fallen out of grace: its third quarter was disappointing again, with a 12 % turnover drop.

Turnover below 1 billion dollars

The American company saw its third quarter turnover drop 12 % to 911.4 million dollar (730 million euro), well below analyst expectations at 982 million dollar and even more below last years result that was still over 1 billion dollar. Especially its cheaper brand, Hollister, is being pummeled. 

 

"We are clearly disappointed with our results for the third quarter. Continued weak store traffic was the primary contributor to the weak sales trend, particularly in Europe, where the environment there showed signs of further slowing", CEO Mike Jeffries said.

 

Very weak European performance

Like for like the company achieved its best result in its home market America, where American turnover "only" dropped 7 %. Turnover in Europe went down 10% and in the rest of the world it dropped at least 15 %. Increased competition in Europe from cheaper fast fashion chains, like Forever 21, H&M, Zara and Primark has hindered A&F. 

 

In an attempt to reconnect to youngsters, the group had decided in August to remove large logos from its new collections after an admission that sales of clothing with over-sized logos have dwindled.

Questions or comments? Please feel free to contact the editors


Colruyt Group beats expectations

19/06/2018

A solid holiday season allowed Belgian Colruyt Group to raise its market share and even keep its profit margins at the same level - contrary to expectations. The company also posted another online growth, meaning online is now worth 370 million euro.

Makro Belgium "in intensive care", new business plan should remedy

18/06/2018

A more professional product range and a return to bigger packages: that is how Makro Belgium wants to return to better ways. Its CEO Vincent Nolf admits the chain is currently "in intensive care", but hopes to see improvement already next year.

Online supermarket Wink.be throws in the towel

18/06/2018

The Belgian Louis Delhaize Group has decided to terminate its online supermarket Wink.be. The company was started in 2013, but never even came near reaching the break-even point.

Alter’Native Food: A place apart at the upcoming SIAL Paris !

14/06/2018

(Advertorial) From 21st to 25th of October, Paris will be the world's food capital. 7,200 French and international exhibitors will be presenting their innovations among 21 exhibitions sectors.

Jumbo starts Belgian daughter company

13/06/2018

Dutch supermarket chain Jumbo has made another important step towards its expansion in Belgium: it has founded the company "bvba Jumbo Belgium".

Agreement at Carrefour Belgium: fewer redundancies, no store closures

13/06/2018

Trade unions and management have finally reached an agreement at Carrefour Belgium, which will be presented to the employees later this week. An early retirement scheme has however shocked some of the political parties.