Abercrombie & Fitch quarterly profit plunges

Teen apparel retailer Abercrombie & Fitch Co reported a 58 per cent fall in quarterly profit as it struggles to keep up with the tastes of young shoppers.

Abercrombie’s net income fell to $66.1 million, or 85 cents per share, for the fourth quarter ended February 1st.

This compares to $157.2 million, or $1.95 per share, a year earlier.

Excluding restructuring and other charges, the company earned $1.34 per share.

Revenue fell 12 per cent to $1.30 billion.

Chief executive Mike Jeffries has been struggling to reconnect with the chain's teenage customers who are less enamoured of Abercrombie's fashions, half-naked models and cacophonous stores.

Jeffries, who has been chief executive for nearly 22 years, has faced criticism for failing to stop the once-edgy retailer from ceding market share to "fast fashion" chains such as Forever 21 and Zara over the past couple of years.

He had also stirred controversy in the process by suggesting the company’s clothes were made for “cool” and “attractive” kids and not for “fat” people.

The board stripped Mr Jeffries of his chairman duties last month, bowing to investor pressure to reduce his control over the struggling company.

Reuters