Abercrombie & Fitch Co. (NYSE: ANF) stock falls 20% on Tuesday after the company has reported quarterly earnings below analyst’s expectations due to declining sales in large flagship locations.
The retailer recorded a loss of 25 cent a share, a bigger loss than the average of 20 cents projected by analysts.
The company has explained the decline in sales by a slowdown in tourism, as tourists are major contributors in large cities where the flagship stores of retailers are located.
Other retailers, like Tiffany (NYSE: TIF) and Michael Kors Holdings (NYSE: KORS) have also expressed concerned regarding smaller amount of travelers. Tourist are likely discouraged from visiting the United States because of the strong dollar making traveling and prices in general more expansive for people abroad.