Challenging macro economic conditions has forced Abercrombie and Fitch to reduce its earnings forecast for the year and to reduce the number of Hollister stores it plans to open internationally in 2012.
Abercrombie said international comp store sales fell 26% in the second quarter ended July 28 and U.S. comp store sales fell 5%.
Company wide, comps fell 10%.
The company has been on a major international expansion tear and had planned to open 40 Hollister stores overseas this year. That number now will be reduced to about 30, the company said.
The company is also putting a “pause” on opening flashy new international flagships for now, and will likely focus store openings on newer international markets rather than cannibalize existing ones.
The company’s international store fleet remains more profitable and more productive than its domestic one, however.
Overall, Q2 sales rose 4% to $951.4 million. U.S. sales declined 5% to $648 million and international sales rose 31% to $303.4 million.
As a result of softer than expected sales, the company lowered its full year earnings guidance. It will report official Q2 results in mid August.
