US clothing retailer Abercrombie and Fitch has announced that its sales fell by ten per cent during the second quarter of the year.
It was confirmed in a statement by the company that it also now has a weak profits forecast for the third quarter.
Shares in the firm lost more than 17 per cent of their value yesterday (August 22nd) on the back of the news, reports BBC News.
Mike Jeffries, chief executive and chairman of the company, explained that the second quarter had proved to be more difficult than the firm had expected. Analysts had predicted a 2.5 per cent drop in sales for the clothing brand.
Rahul Sharma, of retail consultants Neev Capital, said: "The taste of the teen market is fickle, and so this is always a difficult space for retailers, but at the heart of it, it's a problem with the offering."
When the New York Stock Exchange opens later in the day, the share price of Abercrombie and Fitch will stand at 38.53 after the losses sustained by the firm yesterday.
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