World News: 12:48 GMT Thursday 29th August 2019. [Yahoo Business News Feed via SPi World News]
(Bloomberg) -- Abercrombie & Fitch Co. plunged as sales fell short of expectations in the latest quarter, sparking concern as tariffs loom over U.S. apparel companies.Same-store sales, a key metric for retailers, were flat for its Abercrombie and Hollister Brand. The retailer now sees net sales being flat to up 2% for the full year -- down from a previous range.Key InsightsUBS analyst Jay Sole wrote earlier this month that the bar for apparel retailers is “essentially unreachable” this quarter due to the “major risk” of tariffs. With U.S. duties on Chinese goods poised to rise, Abercrombie said the latest round of tariffs are “expected to have a direct adverse impact on cost of merchandise and gross profit of approximately $6 million for the fall season.”The retailer’s revised outlook includes tariff risk and factors in anticipated additional tariffs of up to 30%.The quarterly result exacerbates the pressure on Abercrombie. It had rebounded in recent quarters, largely on the strength of its Hollister brand, but that momentum seems to have faded.Market ReactionAbercrombie shares fell as much as 16% in early trading. The stock has declined 15% this year, part of a broad decline by apparel retailers.Click here for company statement.To contact the reporters on this story: Jonathan Roeder in Chicago at email@example.com;Jordyn Holman in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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