Why Abercrombie & Fitch's Store Closings Spell Big Trouble
Recently, Abercrombie & Fitch (NYSE: ANF) decided to close all of its stores outside the Asia-Pacific (APAC) region for approximately two weeks in an effort to slow the spread of the coronavirus. Either by choice or by government mandate, other retailers and restaurants have taken similar steps, shutting their doors to consumers to protect the public's health.
The consumer-discretionary sector is facing lower sales and profitability for the foreseeable future. While investors can hope the economy brushes this disruption off relatively quickly, allowing people to return to their jobs and routines, including their usual shopping habits, we are in uncharted territory.
For Abercrombie & Fitch, which was already grappling with several challenges, the store closures will only make things even tougher.
Source Fool.com
