American fashion company Abercrombie & Fitch has had another onerous quarter, but its turnover was markedly better than wat analysts had expected. Particularly Hollister performed well.
Hollister back on track
In the second quarter, Abercrombie & Fitch managed an 817.8 million dollar (720 million euro) turnover, which is down 8.2 % compared to a year ago. However, analysts had only expected the company to reach 811 million dollars (710 million euro).
The fashion company did have to deal with a 810,000 dollar (700,000 euro) loss, compared to a 12.9 million dollar (11.3 million euro) profit last year. On a like-for-like basis, the company did manage a 8.6 million dollar (7.6 million euro) profit, which boils down to 12 cents profit per share. That is still a 39 % drop, but analysts had expected a 4 cent loss per share.
The A&F brand still struggles as its like-for-like turnover dropped 7 %, while Hollister merely dropped 1 %. In the first quarter, the like-for-like turnover dropped was 6 % for Hollister, which means the brand is seemingly getting back on track.
As a company, Abercrombie & Fitch has been implementing a new strategy, which should make its collections more accessible, but which should also update its stores to become more inviting.