Companies

Fitch And Abercrombie Are Closing Stores In US

Abercrombie & Fitch introduced early Wednesday morning throughout its fourth-quarter earnings results that will probably be closing as many as 40 shops in fiscal 2019. Nearly all of these shops shall be positioned within the US, the corporate stated.

“Based mostly on the outlook offered right this moment, we’ll shut as much as 40 shops in 2019 as we proceed to judge our whole retailer base,” a spokesperson for the corporate informed Enterprise Insider. “On the identical time, we proceed to spend money on our retailer experiences and plan on delivering roughly 85 new experiences, together with 40 new shops, with continued discount in general sq. footage.”

The spokesperson didn’t verify which of its manufacturers can be impacted. The corporate additionally owns Hollister and Abercrombie Youngsters.

The information comes per week after Gap, JCPenney, and Victoria’s Secret introduced greater than 300 retailer closures over the course of 24 hours

Identical-retailer gross sales for Abercrombie & Fitch had been up three% general throughout 2018, however, dropped 2% for the Abercrombie model alone throughout the fourth quarter. This follows four consecutive quarters of constructive similar-retailer gross sales progress in 2018.

Analysts not too long ago praised the model as being on its option to executing a comeback after a number of years of sliding gross sales.

“The restoration at Abercrombie & Fitch remains to be a piece in progress. Nonetheless, turning around an as soon as the very troubled model is a way from straightforward,” Neil Saunders, managing director of GlobalData Retail, wrote in a word to shoppers in November.

He continued: “Progress and development don’t all come without delay; this can be a step-by-step course that can construct over time. We’re happy that administration is on the fitting street to restoration.”