Reporting a deeper-than-anticipated first-quarter loss, Abercrombie & Fitch Co. (ANF) – apparel retailer, which had though reduced its prices during the quarter, but had resisted as drastic price-cuts as the other retailers - intends reviewing its earlier stand with regard to price reductions.

As a result of ANF’s staunch defense of a fundamentally non-promotional approach, it posted a $26.8 million first-quarter loss, in comparison to its year-before income of $62.1 million. The retailer’s gross margin plunged 350 basis points to 63.3 percent, chiefly due to discounting.

The company is now “actively planning for meaningful reductions,” particularly at its Hollister and children’s stores, and ongoing clearance events.

Addressing the investors at a conference call, ANF Chairman and CEO Mike Jeffries talked about the company’s “miss” with regard to anticipate some key women’s fashion styles. Jefferies said: “Clearly we missed dresses and clearly we weren't as aggressive with print and pattern as we should have been. We were wrong. I was wrong, and we're correcting as we go forward.”

Talking about the consumers’ reluctance to spend on “premium brands” amid recession, Jefferies said that despite the company taking pride in the quality of its brands and its unique store experience, and not on price; the kind of price-consciousness that has of late been dictating the shoppers’ moves is something that he had not witnessed before.

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