Aug 24, 2017
Download the article
Click here to print
Text size
aA+ aA-

Abercrombie posts much smaller loss than expected, shares soar

Aug 24, 2017

U.S. teen apparel retailer Abercrombie & Fitch Co posted a much smaller than expected quarterly loss on Thursday, helped by robust demand for its Hollister brand, sending the company's shares soaring nearly 20 percent.

Net loss attributable to Abercrombie widened by $2.4 million - Photo: Abercrombie & Fitch Co

Hollister, the retailer's California beach-themed brand of surfwear, reported a 5 percent rise in comparable sales in the second quarter ended July 29, beating analysts' average estimate for a 2.9 percent increase, according to Consensus Metrix.

Abercrombie said total sales at established stores fell 1 percent. That result, too, topped analysts' expectations.
The company's upbeat results come as several teen apparel companies struggle in the face of intense competition from fast-fashion retailers such as H&M and Zara as well as online merchants such as Amazon.com Inc.

Net loss attributable to Abercrombie widened to $15.5 million, or 23 cents per share in the second quarter, from $13.1 million, or 19 cents per share, a year earlier.

Excluding one-time items, the company posted a loss of 16 cents per share. Analysts on average had expected a loss of 33 cents, according to Thomson Reuters I/B/E/S.

The retailer's net sales fell slightly to $779.3 million, also handily beating analyst expectations of $758.6 million.
Abercrombie's shares were up 18.8 percent at $11.42 in premarket trading.

© Thomson Reuters 2023 All rights reserved.