Apparel chains Victoria’s Secret & Co. and Abercrombie & Fitch reported declining quarterly sales and lowered their sales targets for the year as consumers shift their spending away from clothing and other discretionary items.
The results, following lackluster earnings reports from many department stores and big-box chains, were weaker than investors had expected. Shares of both companies fell in premarket trading but have since recovered, with Victoria’s Secret up 4.3% to $40 and Abercrombie down fractionally to $18.64.