Abercrombie & Fitch Shares Fall on Weak Sales Outlook
Teen apparel retailer Abercrombie & Fitch reiterated its second-quarter forecast, but said sales during the quarter will not be as good as those in the first, according to CFO Jonathan Ramsden, who was speaking at a conference in New York.
The retailer's shares fell on concern about the disappointing sales outlook.
Clothing sellers have been under pressure from rising cotton prices as well as higher transportation costs. Both have put pressure on profit margins as the companies have been struggling to raise prices.
Abercrombie & Fitch, which operates the Hollister and Gilly Hicks, said last month that it is targeting a mid-single digit increase in same-store sales in the second quarter, following an increase of 10 percent in the first quarter. Total sales jumped 22 percent to $836.7 million.
Ramsden made his remarks at the Piper Jaffray Consumer Conference in New York.
Reported by Courtney Reagan, written by Jessica Naziri