Abercrombie & Fitch misses same-store sales estimates, shares fall

[August 30, 2018]  (Reuters) - Abercrombie & Fitch Co <ANF.N> missed quarterly same-store sales estimates on Thursday, hurt by lower demand for its namesake line of apparel for teenagers and Hollister brand of surfwear.

 Signage is seen at the Abercrombie & Fitch store on Fifth Avenue in Manhattan, New York City, U.S., February 27, 2017. REUTERS/Andrew Kelly/File Photo

The company's shares fell nearly 12 percent to $24 as sales at its usually reliable Hollister underperformed and attempts to turnaround its flagship brand looked to be on shaky ground.

The company said sales at established stores rose 3 percent in the quarter. Analysts on average had expected 3.7 percent increase, according to Thomson Reuters I/B/E/S.

Same-store sales of Hollister beachwear, the company's key revenue contributor, rose 4 percent, but missed the analyst average estimate of 5.3 percent rise.

Net loss attributable to Abercrombie narrowed to $3.9 million, or 6 cents per share, in the second quarter ended Aug. 4, from $15.5 million, or 23 cents per share, a year earlier.

The company's net sales rose 8.1 percent to $842.4 million. Analysts on average had expected revenue of $845.2 million.

(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur)

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