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Abercrombie to close up to 50 US stores

Home - by - February 23, 2013 - 16:00 America/New_York - 19 Comments

FT

Abercrombie & Fitch said it would close 40 to 50 stores in the US this year as the youth fashion retailer’s shares tumbled following weak sales in the crucial Christmas quarter.

Like-for-like sales fell 1 per cent at Abercrombie & Fitch’s US stores in the three months to February 2, extending previous declines in an intensely competitive sector where its rivals include American Eagle, Aéropostale and Forever 21.

The Ohio-based retailer, known for its thumping in-store music and scantily clad male door staff, said direct sales to US consumers, which include its ecommerce unit, rose 5 per cent, although they remain a small part of its business.

In an attempt to offset slower US growth, Abercrombie, which operates namesake stores as well as surf-themed Hollister and Abercrombie Kids, has made a big push overseas and online.

But its international segment performed even more poorly than the domestic stores, with like-for-like sales down 14 per cent.

“The earnings report was just one big giant pool of negativity,” said Brian Sozzi, chief equities analyst at NBG Productions. “Sales did not meet expectations, particularly in its international segment, and the company offered cautious comments on its first-quarter outlook. This is just something the market did not want to hear.”

“Also the company is looking to take prices up. The reason why Abercrombie had done better in recent months was because they had become more competitive on prices, so this is a big concern,” he added.

MORE     http://www.ft.com/cms/s/0/8028d9f6-7d07-11e2-8bd7-00144feabdc0.html#axzz2LgtaVU5Z

[SNIP] Won’t Obama help these poor boys???

 

 

» 19 Comments

  1. Kenny Sullivan

    February 23rd, 2013

    How many times do I have to ask iOTW to quit using pictures of me without due credit!?

    Thumb up +6

     
  2. Kenny Sullivan

    February 23rd, 2013

    oh, and this is another reason Wal-Mart should be up in sales…overpriced fasion places like this are failing….

    Thumb up +5

     
  3. Tim

    February 23rd, 2013

    Couldn’t happen to a more deserving company.

    Thumb up +8

     
  4. Dadof3

    February 23rd, 2013

    Upside: Less child porn displayed to the public?

    Noteworthy Comment Thumb up +10

     
  5. RANDO

    February 23rd, 2013

    Hemingway used to buy his gear from A&F. I doubt if he would these days.

    Thumb up +2

     
  6. Kenny Sullivan

    February 23rd, 2013

    and less gay porn!

    Thumb up +6

     
  7. Dadof3

    February 23rd, 2013

    “and less gay porn!”

    ..said the model. :)
    .
    .
    .

    you set ‘em up. I’ll swing at ‘em. :D

    Thumb up +6

     
  8. Kenny Sullivan

    February 23rd, 2013

    Hey, I look so good everybody wants me!

    Thumb up +3

     
  9. Dadof3

    February 23rd, 2013

    Kenny, Walmart demographics the same a A&F?

    Thumb up +1

     
  10. eternal cracker p

    February 23rd, 2013

    It’s a wonder Namblacrumbie & Filth is still in business at all. I underestimated the staying power of outfitting preteens in thongs.

    Thumb up +8

     
  11. Barry and the Ballerina

    February 23rd, 2013

    STIMULUS, err … funds, on the way!

    Thumb up 0

     
  12. MaryfromMarin

    February 23rd, 2013

    @Dadof3–

    “Upside: Less child porn displayed to the public?”

    Thank God.

    Thumb up +3

     
  13. Czar of Defenestration

    February 23rd, 2013

    You mean….homo sex doesn’t *sell* anymore?!? *gasp*

    BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAHAHAHAHA!!!!

    Thumb up +4

     
  14. Billy Fuster

    February 23rd, 2013

    The fashion, art, music, entertainment, and sports industries are heading right down the spiraling toilet of Obama’s economy as few will have the money to spend.

    Thumb up +3

     
  15. Mary Jane Anklestraps

    February 23rd, 2013

    I used to call them abercrombie and bitch. lol.
    Don’t really see them at the malls anymore.
    The few times I went into their stores (to see what the big deal is) it looked like a garage sale on the beach around midnight.
    Meh.

    Thumb up +1

     
  16. Stranded in Sonoma

    February 23rd, 2013

    How many times do I have to ask iOTW to quit using pictures of me without due credit!?

    @Menderman — you do realize that all of those models are…

    Thumb up +2

     
  17. Stranded in Sonoma

    February 23rd, 2013

    A&F will close 50 stores all at once, and the unemployment rate will drop.

    Thumb up +2

     
  18. Kenny Sullivan

    February 23rd, 2013

    Stranded…all except me!

    Love that graphic!!

    Thumb up 0

     
  19. Dadof3

    February 23rd, 2013

    “Stranded…all except me!

    Love that graphic!!”

    Am I the only one that sees a conflict here?

    Thumb up 0