Abercrombie Sales, Profits Tumble In First Quarter

The company says existing store sales, a key indicator of economic health, slid five percent in the first quarter of 2012.(Photo: Flickr)
The company says existing store sales, a key indicator of economic health, slid five percent in the first quarter of 2012.(Photo: Flickr)

New Albany-based retailer Abercrombie and Fitch took a hit during the first quarter of the year.

Shares fell sharply this morning on the news that sales at established stores, a key indicator of a retailer’s health, slid five percent in the first quarter of the year. That’s the first time in two years that sales have decreased at existing Abercrombie stores.

Abercrombie reported income of just $3 million in income in the first quarter, compared with $28 million a year earlier.

But maybe most importantly, the quarterly report lowered the sales forecast for the rest of the year.

In a statement, Abercrombie chairman and CEO Mike Jeffries pointed to what he called a challenging market in Europe, and said despite the Wednesday report executives are largely satisfied with first quarter performance.

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