Abercrombie & Fitch (ANF) has reported another double-digit drop in quarterly comparable sales as an increasing number of young shoppers abandon the teen apparel retailer.
Sales at Abercrombie & Fitch fell 12% to $1.03 billion in the third quarter ending November 2, the company announced Tuesday evening ahead of its Wednesday earnings call with analysts and investors. Same-store sales fell 14% in the same period, an increase from the 10% drop in the second quarter.
The company also revealed that it will close all of its stand-alone Gilly Hicks lingerie stores by the end of the first quarter of 2014. Going forward, the company will sell the lingerie brand in its Hollister stores.
“Our results for the third quarter reflect continued top-line challenges, with overall spending among younger consumers remaining weak,” Abercrombie & Fitch Chief Executive Mike Jeffries said in a statement. “Until we have seen a clear trend improvement, we are continuing to take a cautious approach into the fourth quarter and are working to end the year with appropriate levels of fall carryover inventory.”
Abercrombie has revised its adjusted earnings for the full year to a lower-than-expected $1.40 to $1.50 per share from an earlier forecast of $3.15 to $3.25 per share. Analysts were expecting a profit of $1.96 per share, according to the Wall Street Journal.
The company’s shares plunged by as much as 8% in after-hours trading.