Abercrombie & Fitch Co.'s posted 31% fall in fiscal fourth-quarter earnings on Tuesday as the clothing retailer struggled with a prolonged sales decline in the United States. The teen casual-clothing retailer's sales and margins persisted to fall, but at a milder rate.

The retailer of casual and trendy clothes for teenagers and college-age youth stated that it recorded a net profit of $47.5 million, or 53 cents per share, for the fourth quarter ended on Jan. 30. These figures were lower than what they were the previous year by $68.4 million, or 79 cents per share. A 4.6% dip in revenue was also stated to $936 million and sales at stores open at least a year fell 13%.

Analysts are hoping the sales to rise after the company recently posted unexpected 8% gain in January same-store sales. International sales recently rose 86% and domestic sales dropped 12%. Chairman and Chief Executive Mike Jeffries said on Tuesday that the company intended to grow internationally and increase domestic profitability in 2010.

Because of lower average unit price, gross margin fell to 63.5% from 64.6% and inventories turned down 17%. The shares closed on Friday at $33.85.