New Albany, Ohio Abercrombie & Fitch Co. reported on Friday that its third-quarter profit dropped 46% amid a struggling economy.
Meanwhile, company profit fell to $63.9 million from $117.6 million last year, and revenue fell 8% to $896.3 million from $973.9 million a year ago.
Abercrombie has kept its focus on international investment and kept prices steady despite the difficult economic environment. However, competitors have focused on value and promotion.
As a result, sales have weakened. Same-store sales fell 14% overall during the quarter, including an 8% drop at namesake stores, a 20% drop at abercrombie, its children's concept, an 18% decline at Hollister Co. stores and a 25% drop at Ruehl stores, which are aimed at an older demographic.
Due to weak trends so far in November, Abercrombie said it expects same-store sales will worsen in the fourth quarter and could be down about 26%.