Abercrombie Third-Quarter Net Falls 46%

The retailer expects fourth-quarter earnings well below earnings expectations.

Author:: Joseph Woelfel
Publish date:: Nov 14, 2008 7:46 AM EST

Abercrombie & Fitch

reported a 46% decline in third-quarter net income to $63.9 million, or 72 cents a share, on a pullback in consumer spending and a difficult economic environment, and said it expect fourth-quarter earnings well below analysts' estimates.

Earnings in the year-earlier third quarter were $117.6 million, or $1.29 a share.

Analysts surveyed by

Thomson Reuters

expected the retailer to report third-quarter earnings of 71 cents a share.

Total company net sales fell 8% to $896.3 million in the quarter, while same-store sales declined 14%.

Abercrombie said Friday it now expects fourth-quarter earnings of $1 to $1.05 a share, with fiscal year earnings of $3.27 to $3.32 a share. The guidance assumes a decline in same-store sales of 26% in the period, in line with the early November trend.

Analysts expect fourth-quarter earnings of $1.57 a share.