Abercrombie & Fitch Co., impacted by some flagship closings, reported its net loss rose to $31.1 million, or 48 cents a share, in the second quarter ended Aug. 3, from a loss of $3.9 million, or 6 cents a share, in the year-ago period.
The company cited a 50-cent charge for flagship store exits.
Total sales reached $841.1 million, slightly down from $842.4 million in the year-ago period. Comparable sales were flat.
Sales guidance going forward is modest with the company expecting third-quarter sales to be up about 1 percent and same-store sales around flat. For the year, Abercrombie expects sales to be in the range of flat to 2 percent up and comparable sales to be flat to 2 percent ahead.
Fran Horowitz, chief executive officer, said, “Trends improved throughout the second quarter, enabling us to deliver constant currency revenue growth and meet our previously issued comp and gross profit rate outlook, while continuing to tightly manage expenses. Importantly, we have had a solid start to back-to-school in the U.S. and we look forward to building on that momentum in the back half through exciting product and cohesive marketing campaigns.
“While we are committed to delivering near-term results, we remain keenly focused on our long-term goals as we execute on our transformation initiatives. In the second quarter, we delivered 26 new store experiences, closed our Hollister SoHo flagship store in New York City, realized double-digit digital sales growth, continued our investments in key personalization tools, and grew our loyalty membership accounts across brands. We plan to build on these actions as we continue to lay the foundation to achieving our fiscal 2020 target.”