Abercrombie posts loss

U.S. fashion retailer Abercrombie & Fitch has reported a loss of $26.7m (£16.4) for the thirteen weeks to 1 August against total sales down 23% to $648,5m (£398m) across the group.

Hollister storefront
Hollister storefront

Abercrombie & Fitch landed launched in the UK last year with the opening of its London Flagship and two Hollister stores, one in Southampton and one in London’s Westfield shopping centre in West London.

The group reduced its spend on marketing during the period as part of a reduction of marketing, general and admin expenses which were reduced to $88.7m (£54.4m) from $109m (£66.9) during the same period last year.

The Hollister brand recorded sales like for like sales down 33% against sales on $274.3m (£168.3.) The brand also opened a flagship store in New York during the period.

Hollister’s stores are distinctive for straying from traditional shop design to recreate a California beach hut look, with dramatic store-fronts and layouts.

Abercrombie plans to open further stores internationally this year, including flagships in Japan and Milan and 10 shopping-centre stores, including seven Hollister stores in the UK. Nine stores are planned to open in the U.S.

The company agreed the closure of its 29 stores under the Ruehl brand, which it expects to be completed by the end of 2009.

The group currently operates stores under the Abercrombie & Fitch, Abercrombie, Hollister, Gilly Hicks and Reuhl brands in the U.S., UK and Canada.


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