Apparel retailer Abercrombie & Fitch Co. has revealed its first quarter results. The retailers has stated that its net sales in the reporting quarter plunged 5 per cent to US $ 323.3 million for Abercrombie and 2 per cent to US $ 362.1 million for Hollister. However, direct-to-consumer and omni-channel sales surged 24 per cent of total company net sales in the period under review against 23 per cent last year.
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As per the company release, operating loss in the first quarter stood at US $ 54.9 million versus US $ 90.2 million the same period last year. Net loss attributable to Abercrombie & Fitch for the first quarter was US $ 39.6 million compared with US $ 63.2 million last year. In future, the fashion retailer aims to open around 15 new stores in fiscal 2016, including approximately 10 in international markets – mainly in China, and five in the US market.
Commenting on the results, Arthur Martinez, Executive Chairman of the company said, “Our results for the quarter reflect significant traffic headwinds, particularly in international markets and in our US flagship and tourist stores, resulting in negative comparable sales. Overall, our business remains well managed in these challenging times, with our assortment and customer-centricity efforts driving improved conversion, and expense and inventory well controlled.”
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The company expects second quarter to remain challenging. However, A&F sees returns from significant investments in marketing, store management and omni-channel operations.
