Bad news for shareholders of Abercrombie & Fitch.
Shares fell almost 7% yesterday due to the news of A&F’s large inventories hurting their margins.
Apparently, there’s been a 47% increase in quarterly inventories.
However, A&F’s CFO is backing up the idea of having large amounts of inventory, stating it’s “to correct for the fact that we were significantly underinventoried and below presentation standards coming into the fall season last year."
Though sales have been down as well.
And that’s partly due to the fact that A&F cut its prices down by 15% to keep up with its competitors.
Let's see if they improve their numbers by the end of the year.
[Image via AP Images.]