Abercrombie sale ’s outcomes have been amongst

Comparable revenue dropped at Abercrombie Outlet ’s swanky flagship shops in London and Milan, whilst the company’s lower-priced Hollister shops posted a modest obtain throughout Europe, the corporation mentioned yesterday. revenue fell at shops in Canada and Japan. Quarterly revenue for US shops have been up 14 percent.

“Apparently, A&F materially raised costs within the (European) flagships close to Labor morning plus they might have gone as well far,” mentioned Stacy Pak, an analyst at Barclays Capital.

abercrombie sale ’s outcomes have been amongst probably the most disappointing as sellers reported October comparable revenue — or revenue at shops available at the very least 1 year.

Collectively, leading chains reported a 3.7 % improve — a obtain that nevertheless fell brief belonging to the 5.5-percent go up witnessed a thirty days earlier, according for the worldwide Council of purchasing Centers.

Macy’s was amongst the chains that missed expectations, with CEO Terry Lundgren partly blaming the snowstorm final weekend, which kept consumers aside from its division stores.

Upscale shops also missed forecasts, with Saks posting a 1.8-percent increase, nicely brief belonging to the 5.4-percent obtain Wall road experienced expected.

That seems for being what Abercrombie & Fitch observed throughout the 3rd quarter as shares plunged twenty % yesterday following the pricey preppy store admitted consumers in London and throughout Europe are already balking at its stratospheric markups on jeans, polo shirts and underwear.

The information was a shock to investors, who took it being a signal that European buyers are pulling back again on jitters about Greek debt,

abercrombie outlet online shares tumbled $14.75 to near at $59.26 — their worst one-day lower considering that the fiscal turmoil in past due 2008.

On Abercrombie’s united kingdom internet website yesterday, the store was marketing sweatpants, beach front shorts and puffer jackets for 30 to sixty % off.

The bad outcomes are an embarrassment for CEO Mike Jeffries, who has bet about the retailer’s worldwide divisions for being crucial development engines considering that US malls are previously saturated with Abercrombie shops.

In August, Jeffries experienced boasted to analysts how the European shops experienced “strong momentum” and that he was “pleased” with their performance.

“Abercrombie and Fitch listed outcomes that set their whole worldwide development account in question,” Eric Beder, an analyst at Brean Murray Carret & Co. , mentioned yesterday.



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