Shares of Abercrombie & Fitch (ANF) are sliding on Wednesday after the retailer reported weaker than expected same-store sales growth and announced plans to close three more of its flagship stores.

QUARTERLY RESULTS: Abercrombie & Fitch reported first-quarter adjusted losses per share of (29c) and revenue of $733.97M, both above consensus of (44c) and $733.16M, respectively. The retailer also said same-store sales were up 1% for the quarter, just short of estimates for growth of 1.3%. Hollister's same-store sales were up 2% during the first quarter, with expectations for 3.3% growth, while Abercrombie comparable sales were up 1%. For the second quarter, the company sees revenue flat to up 2%, and comparable sales approximately flat. Abercrombie & Fitch also backed its fiscal year 2019 revenue view of net sales to be up 2%-4%.

ADDITIONAL STORES CLOSING: On Wednesday, Abercrombie & Fitch also said it plans to close three additional flagship stores, namely a Hollister store in New York, an Abercrombie store in Fukuoka, Japan, and another Abercrombie in Milan, Italy. The New York and Milan locations are expected to shut this year, while the Japan store is closing in the back half of fiscal 2020. The retailer noted that it started the first quarter with 861 stores and ended with 857 stores. "We continue to believe in stores and are committed to delivering intimate, omnichannel brand experiences that closely align with our customers' needs," CEO Fran Horowitz said.

QUARTER NOT AS BAD: Commenting on Abercrombie & Fitch's earnings, William Blair analyst Dylan Carden told investors that the company's first-quarter results were not as bad as the corresponding stock selloff. The analyst acknowledged, however, that the valuation going into the quarter "left little room for error." Carden reiterated a Market Perform rating on the shares.

PRICE ACTION: In morning trading, shares of Abercrombie & Fitch have dropped almost 25% to $18.91.  

William Blair believes the retailer's quarterly results were not as bad as the corresponding stock selloff