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.