New Albany, Ohio Abercrombie & Fitch Co. said Thursday that its September same-store sales dropped 14%, more than quadruple the drop Wall Street expected.
The chain warned that earnings for the second half of its fiscal year will likely come in well below prior forecasts due to continued economic difficulties and declining consumer confidence. But Abercrombie chief executive and chairman Mike Jeffries said the business will continue to invest in international growth and avoid marking down merchandise.
Same-store sales fell 7% at the retailer's flagship banner, while same-store sales at the chainâ€™s childrenâ€™s concept, Abercrombie, slid 20%. Same-store sales at its surf-inspired brand, Hollister, dropped 20%. Its new format, Ruehl, aimed at young adults, posted a 24% decline in same-store sales.
Total sales for the period ended Oct. 4 slipped 7% to $275.4 million from $297.4 million. For the year to date, same-store sales fell 6%. Total sales dipped 3% to $2.33 billion.