Boston, MA 11/07/2013 (wallstreetpr) – Abercrombie & Fitch Co. (NYSE:ANF) which is fashion retailer and is struggling has announced that it will offer a bigger collection of women’s tops, more sizes and colors and will start to sell shoes as it tries to bring back its teenager clients who have moved from it to more stylish labels. The company shares closed 14% lower on Wednesday as it reported a fall in same stores sales for the seventh quarter in a row and said that the holiday season may not be very kind.
Both analysts and share holders are looking to the company to change its strategy as the company shares have lost 30% of their market value in this year. Other fashion retailers like H&M and Forever 21, who are fast and cheap in the way they turn around fashion trends, have been taking away market shares from their traditional retail rivals who are stuck with the basic styles around their brand names.
The company in a move to regain its ground has had to resort to giving large discounts and sacrifice of margins in the ongoing holiday season as it tries to get rid of the extra stock. In direct contrast the company’s competitors said on Wednesday that it had ended the latest quarter with no excess inventory and its estimated earnings were above the estimates of Wall Street due to margins which were better than expected.
On its part Abercrombie said that it expected a recovery of margins in the next year, when it will slowly end the promotions regime and keep more styles with lower stock instead of lesser styles with more stock. It plans to keep more women’s styles by spring of next year and start selling shoes and other clothing accessories by the start of next year’s back to school season.
