Sales and earnings drop at Abercrombie & Fitch
By Prachi Singh
28 May 2020
Abercrombie & Fitch Co. has reported net loss per diluted share of 3.90 dollars and 3.29 dollars on a reported and adjusted non-GAAP basis compared to net loss per diluted share of 29 cents on both, reported and adjusted non-GAAP basis last year. Net sales for the quarter declined by 34 percent to 485 million dollars.
Commenting on the first quarter performance, Fran Horowitz, the company’s Chief Executive Officer, said in a statement: “We entered this fiscal year in a strong financial position, and in light of Covid-19 took immediate, strategic and aggressive steps to balance our short and longer-term liquidity needs to best position the business for our key stakeholders. Today, roughly half of our global store base is open. With stores reopening in the U.S. and the EMEA regions, we have experienced sales productivity for reopened stores of approximately 80 percent and 60 percent, respectively, as compared to last year’s levels.”
By brand, sales at Abercrombie were down 30 percent to 212 million dollars and sales at Hollister were down 36 percent to 273 million dollars. The company’s revenues in the United States declined by 31 percent at 323 million dollars, while sales in the EMEA region were down 35 percent to 113 million dollars and sales in the APAC market declined by 51 percent to 32 million dollars. In Other markets, the company posted revenue decline of 29 percent to 18 million dollars. Total international sales dropped by 39 percent to 162 million dollars.