Abercrombie's slump sends stock tumbling

Abercrombie & Fitch's second-quarter loss widened and revenue tumbled as the company delivered a gloomy outlook following a drop-off in mall traffic and tourism that is battering many other fashion retailers.

The chain's stock (ANF) plunged 14.1% in pre-market trading Tuesday after the company reported a net loss of $13.1 million, compared to $800,000 a year earlier, for the period ended July 30.

Abercrombie's revenue fell 4% to $783.2 million. Sales at stores open at least a year — a figure commonly used to gauge a retailer's health — tumbled 4%, including a 7% decline at Abercrombie stores and a 2% decline at the company's Hollister stores.

The company warned that it expects sales "to remain challenging through the second half of the year, with a disproportionate effect from flagship and tourist locations."

The rocky quarter comes less than a week after competitor Express posted its own disappointing quarter, with net revenue down 6% and net income falling 52% to $10.1 million.

Traditional clothing retailers are still scrambling to catch up with fast-fashion competitors such as H&M and Forever 21, which have disrupted the model for teen fashion by delivering new styles quickly and cheaply.

But Abercrombie also described a general drop-off in foot traffic as "a significant headwind."

Abercrombie is sticking by its plan to open 15 new retail stores and six new outlet stores this fiscal year but close 60 locations through lease expirations.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.