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May 29 (Reuters) - Abercrombie & Fitch Co missed Wall Street estimates for quarterly same-store sales due to slowing demand for its surf-themed Hollister apparel and forecast second-quarter sales below estimates on Wednesday, sending its shares down over 17%.
Hollister has been a bright spot for the company over the last few years as its more casual and fun apparel hooked in younger shoppers, who had previously abandoned the company’s flagship brand, Abercrombie, after its logo-emblazoned tees fell out of fashion. However, the company’s most recent results showed that demand for Hollister was weakening, with its same-store sales rising just 2% in the three months ended May 4, missing the average analyst estimate of a 3.3% increase, according to Refinitiv IBES data.
A year ago Hollister’s quarterly same-store sales rose 6%.
Overall same-store sales in the first quarter rose 1%, below estimates of a 1.33% increase.
Abercrombie forecast second-quarter net sales to be flat to up 2%, below estimates of a 2.8% increase. The company blamed its disappointing forecast on a $10 million hit from a stronger dollar.
The company also said it would close three more flagship stores, including a Hollister store in SoHo.
Net sales rose to $734 million from $730.9 million. Analysts had expected net sales of $733.4 million. (Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)