Abercrombie & Fitch Co. (New Albany, Ohio) has reported a rough-and-tumble second quarter: its total sales fell by 23 percent from a year earlier, its same-store sales for the period dropped by 30 percent and it reported a net loss of $26.7 million.
“We continued to be confronted with very challenging conditions during the second quarter,” said Mike Jeffries, chairman and ceo. “We believe we are doing the right things to address those challenges and improve our domestic business. In the meantime, we remain very encouraged by our prospects for international growth.”
According to The Wall Street Journal, much of Abercrombie’s financial difficulties stem from its refusal to offer deep discounts during the current economic downturn, which has allowed “lower-priced rivals such as Aeropostale Inc. and American Eagle Outfitters Inc. to build sales and finance attacks on Abercrombie’s children’s and young adult sales.”
Despite its current financial woes, Abercrombie said it remains on track to open 13 new stores overseas and nine more in the U.S. during its fiscal 2009.