Dive Brief:

• Abercrombie & Fitch Co. reported Thursday a 6% drop in revenue in the most recent quarter compared to sales posted last year. Net income rose from $11.4 million last year to $12.9 million in the second quarter. 
• The parent company of Abercrombie & Fitch and Hollister stores said that same-store sales declined 7% in the most recent quarter for Abercrombie stores, and 10% for Hollister stores. 
• The company faces many challenges in a changing retail environment, as malls report slower traffic and traditional teen retailers struggle to compete with fast-fashion. 

Dive Insight:

As teenagers shift their priority from having the latest clothing trends to the latest technology, retailers like Abercrombie also need to deal with the likes Forever 21 and H&M, fast-fashion stores that offer new styles at low prices. Abercrombie has seen a range of shakeups in the past months under pressure from investors, including new executive hires and store and inventory changes. CEO Mike Jeffries says that these changes have resulted in "modest improvement," but eyes will be on the retailer during the back-to-school season to see how well it adapts to the changes.