Abercrombie & Fitch shares tank 14 percent after Q3 trading update

Shares of Abercrombie & Fitch plummeted 14 percent, after the teen clothing retailer reported a 12 percent slump in its third quarter revenues, more than what analysts estimated, hurt largely by weak traffic given the highly promotional and challenging environment. The company also detailed a weak earnings outlook for third quarter.

Abercrombie's third-quarter sales decreased 12 percent to 911.4 million dollars from 1.03 billion dollars last year. Analysts polled by Thomson Reuters expected sales of 982.24 million dollars, or down 4.90 percent.

The company expects to report adjusted earnings of 0.40 dollars to 0.42 dollars per share for the third quarter. Analysts estimate earnings of 0.67 dollars per share for the the quarter. The company is scheduled to report its third quarter results on Wednesday, December 3.

New Albany, Ohio-based Abercrombie said comparable sales in September and October were significantly weaker than August. The teen-apparel retailer has been struggling with lower traffic, inventory problems and strong competition in the market.

Inventory cost for the quarter dropped 20 percent from a year ago. ANF is currently trading at 30.76 dollars, down 4.62 dollars or 13.06 percent, on the NYSE. (dpa-AFX)