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Teenage apparel maker, Abercrombie & Fitch Co. (NYSE:ANF) reported on Wednesday that its fiscal second-quarter earnings fell by 52% as it grappled with unexpectedly weak sales trends, particularly, in the international markets.
For the quarter ended July 28, company’s profit stood at $15.5 million or 19 cents a share, down from $32 million or 35 cents a share, in the year earlier quarter.
Gross margins for the period contracted to 62.5% from 63.6%. Same-store-sales also fell by 10% for the quarter
Just few days before, the company also downwardly revised its outlook for the current quarter, citing weakness in demand both from the Europe and U.S. At that time, the company also said that same-store-sales were down 5% in the U.S. while it slumped 26 % in the international markets.
In last few quarters, the company has shown marked weakness due to flagging sales in Europe even as it faced rising number of markdowns. Back in June, the company disclosed that it will shut down additional 180 stores in an effort to improve its margins from the U.S. markets.
Meanwhile, the company has also said that it will be increasing its current share buyback plan by 10 million shares, which will bring the total number of shares available for the repurchase at 22.9 million shares.
