Even though Abercrombie & Fitch Co. swung to a second-quarter profit, the teen retailer’s shares descended 6.9 percent to close at $35.05 in trading Tuesday as worries over softening margins, rising inventories and newly announced store closures preoccupied Wall Street.
A&F unveiled plans to chop up to 110 stores over the next 18 months, mainly because of natural lease expirations. The apparel firm anticipates closing 60 stores domestically during the year and 50 more stores in 2011. The majority of closures will be in the kids’ division and in the Abercrombie chain, executives said in a call to Wall Street analysts. On the international front, the retailer said it would open 20 mall-based Hollister stores in fiscal 2010, down from its previous estimate of 25 stores.
Hermès is launching a Laundromat pop-up shop in NYC - dubbed Hermèsmatic - where customers can bring their old scarves to be dip-dyed by an expert. Get all the details on WWD.com. #wwdnews (📷: @donstahl)