Published June 22, 2012
Abercrombie & Fitch (ANF) this week said it has identified another 180 stores it plans to shutter as the teen apparel maker looks to continue shaving costs amid the difficult economic environment.
At a Deutsche Bank (DB) consumer conference on Wednesday in Paris, A&F said the store closures are skewed toward its namesake and kids brands, “with a smaller number of closures” for its Hollister division.
According to a transcript released in a regulatory filing on Friday, Jonathan Ramsden, the struggling retailer’s chief financial officer, said most of these closures have been through “natural” lease expirations, but there has also been a “limited number” of buyouts.
Management expects the closures to “modestly” boost the company’s bottom line on a year-over-year basis.
A&F, which has already shuttered 135 stores over the past two years, is attempting to stop the bleeding. Last month the company disclosed a 5% decline in same-store sales last quarter -- its first quarterly drop in same-store sales in more than two years.
Despite the plans to shrink stores, A&F said it plans to continue its “highly profitable international rollout strategy."
Shares of A&F had a muted response to the news, recently trading up 0.2% to $31.04. The shares have tumbled about 37% so far this year and more than 50% over the past 12 months.