Abercrombie & Fitch same-store sales plunge again

Reuters

* Third-quarter revenue falls 12 pct to $1.03 bln vs est$1.07 bln

* Comparable sales fall 14 pct

* Cuts full-year adjusted earnings/share view to $1.40-$1.50vs est $1.96

* Shares fall as much as 15 pct in after-market trading

Nov 5 (Reuters) - Abercrombie & Fitch Co reportedanother double-digit drop in quarterly comparable sales as youngshoppers stayed away, and the teen retailer more than halved itsfull-year adjusted profit forecast.

The company's shares fell as much as 15 percent after thebell.

Abercrombie and rivals such as Aeropostale Inc andAmerican Eagle Outfitters Inc have been struggling asyoung shoppers shy away from their logo-centric clothes in favorof the trendier merchandise offered at chains like Zara, Forever21 and H&M.

"Our results for the third quarter reflect continuedtop-line challenges, with overall spending among youngerconsumers remaining weak," Abercrombie Chief Executive MikeJeffries said in a statement.

Abercrombie said it expects adjusted earnings for the fullyear of $1.40-$1.50 per share, down from its forecast of$3.15-$3.25 per share in May.

Analysts on average were expecting a profit of $1.96 pershare, according to Thomson Reuters I/B/E/S.

Same-store sales declined 14 percent in the third quarter.They fell 10 percent in the second quarter ended Aug. 3.

The company expects a low double-digit decrease incomparable sales for the current quarter.

Net sales fell 12 percent to $1.03 billion in the quarterended Nov. 2, missing analysts' average estimates of $1.07billion.

Abercrombie said it expects to incur pre-tax charges ofabout $90 million-$100 million in the third quarter related tothe restructuring of its Gilly Hicks intimate apparel brand.

The company said it will close all of its standalone GillyHicks stores and offer the brand through its Hollister storesand online business.

Abercrombie shares were down 5 percent at $36.10 after thebell. They had closed at $38.31 on the New York Stock Exchangeon Tuesday.

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