A&F Upbeat on Year Ahead, But Stock Plummets

Abercrombie & Fitch Co., showing narrowing losses and modest comparable-sales gains, got off to a good start this year and it’s likely to get better in the back half. That didn’t stop Wall Street from hammering its shares, however. “I’m proud of how we did in the first quarter,” chief executive officer Fran Horowitz told WWD. “The brands have become increasingly differentiated in their product, voice and experience. “We delivered what we said we would deliver and we went from negative to positive comps at Abercrombie & Fitch, which was a real testament to the team.” Earlier on Wednesday, A&F reported that its loss shrunk to $19.2 million in the first quarter ended May 4, from $42.5 million in the year-ago period. Net sales increased to $734 million from $731 million, including the adverse impact from changes in foreign currency exchange rates of about $16 million or 2 percent. Overall comparable sales rose 1 percent. Hollister posted a 2 percent comp gain, with total sales up slightly to $432.63 million from $428.45 million in the year-go period. The division did best in guys’ jeans, pants, fleece, outerwear and sweaters. Girls did best in outerwear and bottoms. The Abercrombie & Fitch division posted a 1 percent comp

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