Despite Abercrombie & Fitch’s attempts at a comeback its woes continued in its second quarter, as the company reported its 14th consecutive quarterly drop in sales.
Shares of the company were down more than 20 percent at Tuesday’s close, with the teen retailer now admitting it no longer expects business to improve in the coming months, even during the holiday season.
Net sales for the second quarter totaled $783.2 million, down 4 percent compared to last year. Abercrombie & Fitch adds to the negative news by announcing 60 store closures scheduled across the United States this year. That will cut into its fleet which currently numbers 744 nationwide.
By brand, A&F’s namesake business was down 5 percent during the second quarter, while Hollister was down 4 percent. The company blamed fewer shoppers at its flagship stores and weak tourism for its woes.
“Recognizing we are in a challenging environment, we are confident, however, that we are focusing on the right priorities,” said A&F Executive Chairman Arthur Martinez. “We expect to see traction in our business as we introduce new product and invest in marketing to drive awareness and relevance for our brands.”