Abercrombie & Fitch

Store closings are hardly an infrequent topic in this space. As a barometer for both the performance of individual brands and the market at large, they are an important part of the equation for any retail analyst. Store closings are part of healthy portfolio management for any brand, and, on a larger scale, bankruptcies and reorganizations are a reflection of the market at work.

New Albany, Ohio – Abercrombie & Fitch Co. reported a net loss of $23.7 million in the first quarter of fiscal 2014, up from $7.2 million in the year-ago period, but less than analysts had expected. Restructuring charges associated with the closure of Abercrombie’s Gilly Hicks stand-alone stores, as well as the impact of heavy discounting on profit margins, helped drive the retailer’s net loss growth. The chain backed its full-year forecast as demand in its female business improved and sales fell less than expected for the first time in six quarters.

Although controversial Abercrombie & Fitch CEO Mike Jeffries said he was pleased that the company’s earnings for the first quarter ended May 3 were in line with expectations, comparable-store sales dropped for the ninth straight quarter.

The company widened its loss in the quarter to $23.7 million, or 32 cents per share, from $7.2 million, or 9 cents per share, in the prior-year quarter. Total net sales decreased 2% to $822.4 million, while comparable-store sales decreased 4%.

New Albany, Ohio – Abercrombie & Fitch Co. and Abercrombie & Fitch Stores Inc. have offered to pay $96,000 to 13 assistant managers for failing to pay proper overtime wages, in connection with a lawsuit filed in the Eastern District of New York. This is in addition to prior offers from Abercrombie & Fitch to pay other assistant managers who had joined the lawsuit.  

Melville, N.Y. - Global Facility Management & Construction is naming two new members of its management team. Bruce Wollmuth has been named construction manager, leading a team of construction project managers.

New Albany, Ohio – Abercrombie & Fitch Co. reportedly plans to open 100 new stores under both its marquee and Hollister banners in China. According to China Daily, Abercrombie seeks to expand its presence in China during the next 10 years, and will also open a dedicated Chinese e-commerce site.

New Albany, Ohio -- Abercrombie & Fitch Co. CEO Michael Jeffries saw his pay shrink 72% in 2013, according to a filing by the company on Tuesday.

The teen retailer has recorded declining sales and profits, and Jeffries has come under fire. His total compensation last year was $2.24 million, down from $8.16 million in the previous year and $48.1 million in Abercrombie’s fiscal 2011. He was paid more than $20 million a year in the three years before that, according to the report.  

Hollister plans to open the Hollister House this summer from Memorial Day weekend through early August. The brand, rooted in Southern California, will feature new summer styles and host music performances at the beach house all summer long.

The lineup of musical artists includes Ariana Grande, Chromeo (DJ set), Cody Simpson, Lucy Hale, MKTO, Timeflies and Zendaya.