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Abercrombie & Fitch Q3 sales drop 12%, missing estimates


New Albany, Ohio –- Abercrombie & Fitch reported net sales of $911.4 million for the third quarter of fiscal 2014, less than Wall Street forecast, down 12% from $1.03 billion in the year-ago period. The chain cited slowing mall traffic and weaker results in the latter part of the quarter.

Total comparable sales, including direct-to-consumer sales, decreased 10% with U.S. same-store sales decreasing 7% and comparable international sales decreasing 15%. Total direct-to-consumer comparable sales increased 8%.

We are clearly disappointed with our results for the third quarter,” said Michael S. Jeffries, CEO. “Continued weak store traffic was the primary contributor to the weak sales trend, particularly in Europe, where the environment there showed signs of further slowing. In addition, the decline in sales of heavy logo product weighed on the sales trend as we continued to reduce that element of our assortment in response to changing consumer preferences.”

In the short term, Abercrombie & Fitch is reviewing measures to drive fourth quarter improvement. Longer term, the retailer said it is taking steps including the completion of its move to a branded structure, strategic investments in Asia and in the direct-to-consumer business, shifting assortment in line with consumer preferences, re-engaging with the customer through store re-design and marketing initiatives, continuing to close underperforming U.S. stores, and continuing to reduce expenses.

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