Abercrombie & Fitch to Close All Gilly Hicks Lingerie Stores

by Christopher Freeburn | November 6, 2013 9:22 am

abercrombie fitch store 630 flickr 300x225 Abercrombie & Fitch to Close All Gilly Hicks Lingerie Stores[1]Shares of Abercrombie & Fitch (ANF[2]) tumbled almost 7% in Wednesday pre-market trading after the youth-oriented apparel retailer said it would shut down a chain of shops selling its lingerie brand[3].

The company will close every location in its Gilly Hicks chain. Gilly Hicks’s apparel will be sold at its Hollister outlets going forward. Abercrombie will take a charge of between $90 million and $100 million during the third quarter due to the store closings, Reuters notes.

During the third quarter, Abercrombie said same-store sales dropped by 14%. Overall sales declined to $1.03 billion, down 12% from the same period last year[4]. That fell short of the $1.07 billion in sales Wall Street was looking for.

Abercrombie also cut its earnings guidance for the year. It had previously said it expected an annual profit between $3.15 and $3.25 per share. Now it estimates full-year earnings at a range of just $1.40 to $1.50 a share.

The company’s shares have seen their value slide in recent months due to shifting clothing tastes among teens[5].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/07/abercrombie_fitch_store_630_flickr.jpg
  2. ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
  3. would shut down a chain of shops selling its lingerie brand: http://in.reuters.com/article/2013/11/05/abercrombiefitch-results-idINL3N0IQ5GF20131105
  4. down 12% from the same period last year: http://investorplace.com/2013/11/abercrombie-anf/#.UnpP25G1Kf0
  5. due to shifting clothing tastes among teens: http://investorplace.com/2013/09/bear-of-the-day-abercrombie-fitch-kors-anf-aro-gps/#.UnpO3pG1Kf0

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