US: Abercrombie & Fitch eyes more store closures
Teen-apparel retailer Abercrombie & Fitch says it has earmarked another 180 underperforming stores for closure over the next few years as it continues to seek ways to operate more efficiently and to reduce expenses.
The details were included in a filing with the US Securities and Exchange Commission this week, after chief financial officer Jonathan Ramsden spoke at the annual Deutsche Bank Global Consumer Conference in Paris, France.
Ramsden said the company had closed 135 stores in the past two years "as part of an objective of driving our four-wall margins in our US stores higher."
The closures have focused on the A&F and Abercrombie Kids brands, but have also included Hollister stores.
A 5% drop in same-store sales in the US contributed to an 88% drop in first quarter profit, the retailer revealed last month. The company, which is in the process of expanding online and overseas in a bid to drive growth, said international sales jumped 42% in the period.
Improvements in both its domestic and international businesses have helped Abercrombie & Fitch Co to a 40.5% jump in third quarter profit, the teen-apparel retailer said today (14 November)....
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