Abercrombie Sales, Profits Tumble In First Quarter

New Albany-based retailer Abercrombie and Fitch took a hit during the first quarter of the year. Shares fell sharply this morning on the news that sales at established stores, a key indicator of a retailer’s health, slid five percent in the first quarter of the year. That's the first time in two years that sales have decreased at existing Abercrombie stores. Abercrombie reported income of just $3 million in income in the first quarter, compared with $28 million a year earlier. But maybe most importantly, the quarterly report lowered the sales forecast for the rest of the year. In a statement, Abercrombie chairman and CEO Mike Jeffries pointed to what he called a challenging market in Europe, and said despite the Wednesday report executives are largely satisfied with first quarter performance.