On Thursday, the teen apparel retailer, which is in the midst of trying to reverse a pattern of weak sales, reported an adjusted loss per share of 54 cents for the first quarter. Analysts were expecting an adjusted loss per share of 34 cents.
Same-store sales, which are sales from stores open more than a year, declined 9% in the U.S. and 7% internationally. By division, same-store sales fell 9% at the Abercrombie brand and 6% at its lower-priced Hollister brand.
"We knew the first quarter was going to be difficult due to a number of factors, both internal and external and, most significantly, because many of the actions we are taking to improve our business are in the early stages of implementation and have not yet been fully realized," said Executive Chairman Arthur Martinez in a statement.
For now, Martinez is leading the company's operational overhaul following last's year ouster of long-time CEO Mike Jeffries. No comments were provided on the status of the search for a new permanent CEO.
Abercrombie shares initially tanked 4.3% in pre-market trading on Thursday, but then reversed course amid comments from company execs, who sought to allay Wall Street's concerns about the state of its business. Martinez pointed to sequential improvement in same-store sales at Hollister, where customers were finding better prices and fewer clothes with the brand's bird logo. Further, according to Martinez, the "comparable sales trend has continued to improve in May" at the company overall.