New Albany, Ohio -- Abercrombie & Fitch Co. swung to a loss in its third quarter, dragged down in part by charges related to the shuttering of its 28 freestanding Gilly Hicks stores. But its adjusted profit topped analysts' estimates, even as its sales softened.
"Our results for the third quarter reflect weakness in top-line performance, which we expect to continue in the fourth quarter,” said Mike Jeffries, CEO of Abercrombie & Fitch Co. “However, we continue to work hard to offset these conditions and are aggressively pursuing initiatives we believe will improve the sales trend as we go forward.”
For the three months ended Nov. 2, the retailer lost $15.6 million, compared with a profit of $84 million in last year's third quarter.
Revenue fell 12% to $1.03 billion, from $1.17 billion. Wall Street expected revenue of $1.04 billion.
Total U.S. sales, including online and catalog sales, were down 18% to $674.9 million. Total international sales rose 2% to $358.4 million.
Same-store sales fell 14%. Online and catalog sales comparable sales rose 11%.
Abercrombie will continue to offer Gilly Hicks branded intimate apparel through its Hollister stores and direct-to-consumer business.