UPDATE: Abercrombie & Fitch Posts Narrower-Than-Expected Q1 Loss, Shares Gain

Abercrombie & Fitch Co

reported a narrower-than-expected fiscal first-quarter loss. Abercrombie & Fitch posted a quarterly loss of $23.7 million, or $0.32 per share, versus a year-ago loss of $7.2 million, or $0.09 per share. Excluding one-time items, it lost $0.17 per share. Its total sales slipped 2% to $822 million. However, analysts were expecting a loss of $0.18 per share on revenue of $797.7 million. Abercrombie & Fitch's comparable sales declined 4% for the quarter. US comparable sales dropped 4%, while international comparable sales tumbled 5% in the same period. Same-store sales by brand, including direct-to-consumer, fell 1% for Abercrombie & Fitch, slipped 6% for abercrombie kids, and tumbled 7% for Hollister Co. For the first quarter, its net sales by brand came in at $317.8 million for Abercrombie & Fitch, $68.5 million for abercrombie kids and $421.6 million for Hollister Co. Mike Jeffries, Chief Executive Officer said, "In what remains a difficult teen retail environment, we are pleased that earnings for the quarter were in line with our expectations. Overall sales for the quarter decreased 2%, which included strong growth in our direct-to-consumer business. In addition, comparable sales continued to head in the right direction, and included significant sequential improvement in our female business and our Abercrombie & Fitch brand as a whole.” Abercrombie & Fitch reaffirmed its full-year profit outlook of $2.15 to $2.35 per share. However, analysts expected a profit of $2.34 per share. During the first quarter, Abercrombie & Fitch repurchased 3.8 million shares of its common stock. It opened an Abercrombie & Fitch flagship store in Shanghai during the quarter. Abercrombie & Fitch shares surged 8.20% to $38.00 in pre-market trading.