Store closures due to COVID-19 are affecting the performance of many retailers and Abercrombie and Fitch is one of them.
While the retailer’s worldwide sales have been down by as much as 34 per cent, its sales in Asia fell by a whopping 51 per cent in the first quarter.
Though its performance has been not as bad as some of its competitors, yet its sales have been hit badly.
Substantiating on the same, Neil Saunders, Managing Director, Global Data Retail, said that it is very heavily exposed to discretionary apparel categories that have taken a severe hit in these tough times.
Its namesake brand slumped in sales by 30 per cent globally, while sales of Hollister fell by 36 per cent during this period.
Regionwise, sales fell by 35 per cent in Europe, Middle East and Africa, while it dipped by worrying 31 per cent in the US.
Notably, the loss of sales in bricks-and-mortar stores was compensated in part by a 25 per cent increase in online sales.
Last week, the retailer re-opened lot of its stores, and further on this Neil said “our data shows that where reopening has occurred, customer traffic and spend is gradually building which indicates the numbers will strengthen as time progresses.”