Reuters: Global Markets: Abercrombie comparable sales down, shares fall

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Abercrombie comparable sales down, shares fall May 16th 2012, 12:41 By Nivedita Bhattacharjee Wed May 16, 2012 8:41am EDT (Reuters) - Abercrombie & Fitch Co (ANF.N) posted a sharp drop in profit and its first quarterly decline in sales at established stores in more than two years, pressured in part by weak sales in Europe. Its shares fell some 8 percent in premarket trading. Same-store sales, or sales at stores open at least a year -- an important measure of retail growth -- fell 5 percent in the quarter, and the teen clothing retailer forecast a tepid year ahead. Net sales rose 10 percent to $921.2 million, but even that missed estimates. Earlier this month, Abercrombie rival American Eagle Outfitters Inc (AEO.N) raised its profit expectations for the first quarter sharply as it sold more clothes at full price. Most clothing retailers, especially those that cater to teens and young adults, were expected to post strong sales for the first quarter as youngsters rehabbed wardrobes for spring breaks and warm weather. For the first quarter that ended April 28, Abercrombie earned $3.0 million, or 3 cents per share, compared with $25.1 million, or 28 cents per share, a year earlier. Analysts, on average, were expecting 2 cents a share, according to Thomson Reuters I/B/E/S. Sales at the company, which also competes with chains such as Aeropostale Inc (ARO.N) and Gap Inc (GPS.N), rose 10 percent to $921.2 million. Of its peers, Abercrombie is among the most heavily exposed to Europe. "While we are disappointed that European sales trends remain challenging in a very difficult macroeconomic environment, we are largely satisfied with our overall performance for the quarter in that context," Chief Executive Mike Jeffries said in a statement. The company forecast full-year earnings of $3.50 to $3.75 a share, compared with analysts' average estimate of $3.56. Abercrombie's shares were down 8 percent at $41.85 in premarket trading. (Nivedita Bhattacharjee in Chicago; Editing by John Wallace and Maureen Bavdek) Link this Share this Digg this Email Reprints

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