On the fourteenth quarter of straight income, the popular teen clothes retailer lost its sales. The flagship stores of the Corp. received a lower traffic and the low income from tourist during the last quarter.
Stocks of the company lost 12 percent during the last premarket sales that took place this Tuesday.
Sales at the company’s stores that were opened for at least one year have dropped down as well and lost 4 percent of income, which was bigger than expected. The official report for the previous quarter was made on July, 30.
According to the executive head of the corporation, Arthur Martinez, tourists and flagship locations brought the biggest decline, and the traffic is still the main headwind.
He also confirmed that till the end of the year, representatives of the Abercrombie expect that these locations will still have a huge weight on their business.
During the last years, Abercrombie feels an intense competition among the retailers of clothes like Zara and H&M. Both companies are extremely popular in the Europe and make their special lines for teens.
The company is trying to attract new clients by refreshing the Hollister stores, inviting new fashion designers from popular brands. They are trying to leave behind the logo-centric ideas.
Sales at their stores that were open a year ago fell down and lost 7 percent during the quarter, while analysts were expecting only 6.50 percent of fall.
The net sales lost 4.2 percent and reached 783.2 million dollars in total.