// Abercrombie and Fitch’s shares have dropped 10% as stores remain closed amid Covid-19
// The retailer will not be providing a detailed forecast for the second quarter or the full year
Abercrombie & Fitch reported a steeper-than-expected quarterly loss on Thursday, hurt by plunging demand as the majority of its stores were forced to close amid the coronavirus pandemic, sending the retailer’s shares down as much as 10 per cent.
The temporary closures of its newly remodelled stores have slowed the retailer’s efforts to revive its struggling flagship clothing brand and the pandemic has also hampered growth at Hollister.
Retailers such as J.Crew and JC Penny have also borne the brunt of financial pain due to the ongoing pandemic, although it was worse for them as they were forced into bankruptcy.
Abercrombie & Fitch said it was not providing a detailed forecast for the second quarter or the full year.
However, it added that sales at its reopened stores in the US and EMEA regions were at approximately 80 per cent and 60 per cent respectively of what they were a year-ago.
Despite the slump in sales, Abercrombie’s digital sales rose 25 per cent as online shoppers bought more loungewear, knits and joggers as well as Gilly Hicks’ new activewear while at home.