Sales drop at Abercrombie and Fitch

<p>Abercrombie and Fitch has announced sales are down.</p>

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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.