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Abercrombie's profit plunges

Friday, November 18, 2016 - 01:07

Sales fell for the fifteenth straight quarter as the teen retailer struggles to get customers into its stores. Fred Katayama reports.

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Rebranding got rid of these shirtless models, but Abercrombie and Fitch is still having trouble getting customers into its stores. Quarterly profit at the teen retailer plummeted 81 percent. And sales fell for the fifteenth straight quarter. The strong dollar hurt sales to tourists, and seasonal clothes didn't sell well. Its flagship Abercrombie brand saw sales drop 14 percent; Hollister was flat. Mizuho Securities USA analyst Betty Chen said, "It's not getting much traction with the Abercrombie & Fitch turnaround but more disappointing is how Hollister seems to have lost some momentum. We believe this sets up pretty poorly for the holiday season." The company predicts existing store sales will be what it calls "challenging" in the fourth quarter. Abercrombie shares plummeted at the start of trading, adding on to their 37 percent loss this year. The teen retailer has embarked on a rebranding campaign to combat the loss of its customers to fast-fashion retailers like Zara and H&M. But it hasn't been able to lure back shoppers.

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Abercrombie's profit plunges

Friday, November 18, 2016 - 01:07