Abercrombie & abercrombie and fitch aber622 on 29 Oct 2009 12:31 am
Teen apparel retailer Abercrombie & Fitch Co
Teen apparel retailer Abercrombie & Fitch Co. reports earnings for the fiscal second-quarter quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Abercrombie & Fitch Co. has seen sinking sales amid the recession, as it kept its price points among the highest in the teen sector and waited for a rebound. Over the past few months it has planned more sales and offered lower entry-level prices, but sales are still expected to sink during the quarter ended Aug. 2. Meanwhile, competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., with their emphasis on low prices and basics, have fared better.
Sales in stores open at least on year, or so-called same-store sales, fell 28 percent in July, 32 percent in June and 28 percent in May.
The company said it was shuttering its high-priced Ruehl line of handbags and apparel in a move expected to be complete in January 2010. New Albany, Ohio-based Abercrombie also operates surf-themed Hollister, abercrombie, its store for children, and Gilly Hicks, an intimate apparel line.
BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, predict a loss of 7 cents per share on revenue of $647.9 million. The company said, according to a preliminary tally, sales fell 23 percent to $648.5 during the quarter.