The teen retailer's sales fell for the 14th straight quarter. As Fred Katayama reports, the company also issued a weak outlook, and shares tumbled.
Abercrombie & Fitch still struggling to turn on the teens. The apparel retailer's sales fell for the 14th straight quarter. Weak traffic at its flagship stores and a drop in tourist shoppers slammed sales. The company's loss widened. A&F has been remodeling its Hollister stores and luring away designers from top brands to try to spruce up traffic, but sales of that brand fell, too. Fast-fashion retailers such as H&M and Zara have eaten into its business. Cowen analyst Oliver Chen said, "Changes will take time as the company needs to generate renewed awareness and traffic." The company issued a grim outlook, saying comparable sales will remain "challenging" and that flagship and tourist locations will continue to be a drag on its business. Abercrombie and Fitch shares, down 15 percent this year, dropping further in early trading.