American retailers have been facing a tough time given that not many states have allowed reopening of their stores. Abercrombie & Fitch’s Q1 financial report showed high losses as their stores remain closed in many prominent cities in America as well as other parts of the globe.
The brand reported a net loss of US $ 244.2 million as compared to US $ 19 million in the same quarter of last year, whereas net sales fell more than 34 per cent to US $ 485 million, which marked the biggest drop in sales in over a decade.
The retailer already faced financial trouble as their flagship brand, Abercrombie & Fitch struggled to make sales.
Hollister, which is a sister brand of the retailer, has found more relevance in the audiences compared to Abercrombie & Fitch, but that couldn’t save the company from recording huge losses.
The company is betting high on online sales and they seem to be paying off as net sales on their e-commerce presence rose 25 per cent mostly due to their loungewear as well as their in-house brand Gilly Hick’s new activewear collection.