Abercrombie & Fitch missed quarterly same-store sales estimates on Thursday, hurt by lower demand for its namesake line of apparel for teenagers and Hollister brand of surfwear.
The company’s shares fell nearly 12 percent to $24 as sales at its usually reliable Hollister underperformed and attempts to turnaround its flagship brand looked to be on shaky ground.
The company said sales at established stores rose 3 percent in the quarter. Analysts on average had expected 3.7 percent increase, according to Thomson Reuters.
Same-store sales of Hollister beachwear, the company’s key revenue contributor, rose 4 percent, but missed the analyst average estimate of 5.3 percent rise.
Net loss attributable to Abercrombie narrowed to $3.9 million, or 6 cents per share, in the second quarter ended Aug. 4, from $15.5 million, or 23 cents per share, a year earlier.
The company’s net sales rose 8.1 percent to $842.4 million. Analysts on average had expected revenue of $845.2 million.
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