Abercrombie & Fitch Profit Down in 2Q
New York City Abercrombie & Fitch Co. reported a lower quarterly profit on Friday. The company said second-quarter net income fell to $77.8 million from $81.3 million a year earlier.
The retailer said net sales in the quarter, which ended on Aug. 2, rose 5% to $845.8 million, but companywide same-store sales fell 4%.
Same-store sales rose 5% at the company's main Abercrombie & Fitch stores. But that could not offset declines of 9 % at its Hollister chain, 11% at its kid's chain abercrombie, and 22% at Ruehl, a small chain targeting men and women in their 20s.
The company could face more tough times due to changes in management. Abercrombie's CFO, Michael Kramer, said last month he would leave the company to take the top job at clothing maker Kellwood Co. This announcement worried some analysts who said international growth plans, profit-margin preservation and expense management could be at risk, according to a Reuters report.