Abercrombie & Fitch struggles for sales in market averse to logos

Abercrombie & Fitch shares dropped as much as 15 per cent after holiday sales missed estimates and the struggling teen retailer declined to give an earnings forecast.

Sales at comparable stores, which includes locations open at least a year as well as e-commerce orders, fell 10 per cent in the fourth quarter, the company said in a statement on Wednesday. Analysts had projected an 8.2 per cent drop.

Abercrombie is trying to reconnect with teen customers by revamping marketing, updating stores and and reducing the use of its logo, which suffered from overexposure.

As it attempts a comeback in a cutthroat retail market, the company didn’t provide sales or earnings-per-share guidance for the year, saying it was waiting for “greater visibility”.

Fourth-quarter net income fell 33 per cent to $44.4 million, or 63 US cents a share, from $66.1 million, or 85 cents, a year earlier. – Bloomberg