Abercrombie & Fitch‘s fiscal second-quarter results topped analysts’ estimates as a key sales metric improved.
The New Albany, Ohio-based company began tinkering with its image earlier this year in an effort to reverse declining sales. The teen clothing retailer’s changes include no longer having shirtless models at its stores, getting rid of “sexualized” ads, shrinking the logo on its clothing and trying to stock trendier merchandise to keep up with “fast fashion” chains that change their styles more often.
Quarterly revenue for the chain fell to $817.8 million from $890.6 million, but still beat Wall Street forecasts. Ten analysts surveyed by Zacks Investment Research predicted $811.3 million in revenue.
While sales at stores open at least a year dropped 4%, it was better than the 8% decline reported in the first quarter.
This figure is a key gauge of a retailer’s health because it excludes results from stores recently opened or closed.
For the Hollister brand, such sales edged down 1%. This compares with a 6% drop in the first quarter. The Abercrombie brand reported a 7% decline, compared with a 9% fall in the previous quarter.
Abercrombie & Fitch said it expected same-store sales to continue to improve going forward.
