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Abercrombie & Fitch Top Executive Admits Things Aren't Great Overseas

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Abercrombie & Fitch Top Executive Admits Things Aren't Great Overseas

Shares of Abercrombie & Fitch Co. (NYSE: ANF) plummeted more than 17 percent on Thursday after the company reported a poorer-than-expected first-quarter print.

The company said that it lost $0.59 per share in the first quarter on revenue of $685.5 million. Wall Street analysts were expecting the company to lose $0.51 per share on revenue of $710 million.

Investors and traders were likely bracing for a poor earnings report following a long list of peer retailers and apparel sellers who reported poor earnings themselves.

Related Link: Jefferies On The Big Boys Of Retail

International Markets A Problem

Abercrombie's Executive Chairman Arthur Martinez told TheStreet in an interview that the company is having issues in some of its international markets. Specifically, he said that it is "not easy," especially in Western Europe where it is a "very unsettled environment."

Abercrombie oversees around 117 locations in Europe. The United Kingdom is the largest market in the continent with 34 stores.

The executive further told TheStreet that the prospects of terrorism, a strong U.S. dollar and the ongoing "Brexit" saga are all factors that "could make some goods more expensive."

"I will leave it to others to predict what's happening to traveling and tourism, but even amidst these traffic challenges, there is business to be done: The job is to improve conversion rates on the customers that do walk into our store, which we did during the quarter," Martinez also told TheStreet.

 

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