Abercrombie & Fitch Warns of Slowing Sales

Abercrombie & Fitch Co. said it expects a decline in same-store sales during the remainder of spring and the summer season, mainly because of low demand for women’s apparel. “We expect sales to be negative,” said Chief Executive Mike Jeffries at the U.S. Bancorp Piper Jaffray conference in Minneapolis. “I’m just interested in turning the trend around for the back-to-school season.” The company didn’t provide further details. The retailer still expects fiscal second-quarter earnings of 16 cents to 18 cents a share, the forecast it gave in May when it said women’s apparel sales were weakening. Jeffries said the company plans to add women’s apparel items with more feminine touches instead of unisex items that use “graphics,” or clothes with the Abercrombie & Fitch logo. Clothes at the beginning of the season also will have a lower price compared with last year’s opening price points, Jeffries said. Separately, J.P. Morgan & Co. disclosed that it cut its stake in Abercrombie & Fitch to 4.4% as of May 31 from 7.7% as of Dec. 31, 1999. Shares of Reynoldsburg, Ohio-based Abercrombie rose fell 19 cents to close at $8.88 in trading on the New York Stock Exchange.