Abercrombie & Fitch Co., the U.S. teen clothing retailer, reported a second-quarter loss on slumping sales and costs to close its Ruehl stores.
The net loss was $26.7 million, or 30 cents a share, compared with profit of $77.8 million, or 87 cents, a year earlier, the New Albany, Ohio-based company said today in a statement distributed by PR Newswire. Revenue dropped 23 percent to $648.5 million from $845.8 million, in line with preliminary figures released last week.
Chief Executive Officer Michael Jeffries started to lower prices in the second quarter to compete with other retailers such as Aeropostale Inc. and American Eagle Outfitters Inc., which have used discounts to lure consumers on tight budgets. Better inventory management and more frequent, less steep markdowns may help the retailer improve profit margins in the second half of the year, Richard Jaffe, an analyst at Stifel, Nicolaus & Co. in New York said in an Aug. 11 note.
Read the full article by Allison Abell Schwartz “Abercrombie Has Loss on Slumping Sales, Ruehl Stores Shutdown” (August 14, 2009).