A&F shares fell 10.4 percent to $34.35 on Wednesday after the company reported a seventh quarterly fall in same-store sales in a row and warned of a tough holiday season.
Known for its edgy marketing and shirtless young shop assistants, A&F has lost its way with younger shoppers, who have tired of its charms.
Company executives told an analyst briefing on Wednesday that the retailer would also introduce shoes and other accessories next year to try to broaden its appeal.
Analysts and investors have been looking for a new strategy from Abercrombie as its shares have fallen by more than quarter this year.
Chief Executive Mike Jeffries has stirred controversy in the past by suggesting the company’s clothes were made for “cool” and “attractive” kids and not for “fat” people.
“While the company is playing good defense by cutting expenses, this does little to revitalize what we believe is a stale brand,” Stifel Research analyst Richard Jaffe said.
The company said it would have the wider range of clothes in place by spring and aimed to have the shoes and other accessories in place by the next “back to school” season.
At least three analysts cut their price targets on A&F’s stock after the company blamed weak spending among younger shoppers for a double-digit drop in quarterly comparable store sales in the third quarter.
The company cut its full-year adjusted profit forecast by more than half.
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