Abercrombie & Fitch Co. (ANF) reported its financial results for the first quarter on Friday. The company posted a net loss of $42.5 million, or 62 cents a share for the just-ended quarter, narrower than a loss of $61.7 million, or 91 cents a share in the comparable period last year.
On an adjusted basis, the company lost 56 cents a share, well below a loss of 77 cents a share estimated by analysts.
Revenue for the quarter came in at $730.9 million, up from $661.1 million in the same period, a year ealier. Analysts on average were looking for revenue of $696.0 million.
Abercrombie shares fell nearly 9 percent on Friday despite reporting better-than-expected results for the first quarter.
An analyst at Deutsche Bank, Tiffany Kanaga said results were still way behind the lofty estimates of few shareholders, triggering sell-off in Abercrombie shares on Friday.
The company said that its same-store sales jumped 5 percent in the three-month period ended May 5.
Kanaga said investors were expecting a high-single percentage digit surge in same-store sales for the latest quarter.
After several years of weak growth, the Abercrombie brand has seen higher demand this year after the company renovated outlets and introduced sophisticated designs.
Speaking to investors on a conference call, COO Joanne Crevoiserat said the company has done a couple of things, including launching its loyalty programs and spending in stores to enhance conversion and those efforts have somewhat paid off.
However, Abercrombie continue to face challenges in traffic, Crevoiserat added.
The New Albany, Ohio-based retailer’s Abercrombie and Hollister brands beat analysts’ expectations for same-store sales.
Looking forward, Abercrombie expects same-store sales growth in the range of 2 percent to 4 percent for the FY 2018.