New Albany-based Abercrombie & Fitch Co. has posted a loss of $26.7 million or 30 cents a share for the quarter ended August 1, citing 23% fall in sales.

Last year, the apparel retailer had reported a profit of $77.8 million or 87 cents a share for the same quarter.

Revenue dropped to $645.8 million. In the second quarter of 2008 company reported revenue of $845.8 million.

The trendy teen apparel chain publicized its plans in June to close its 29-store Ruehl chain. Quarterly outcome comprised $24.4 million in charges for the Ruehl chain closing.

Now, the company is planning more sales and presenting lower entry prices to fight economic downturn.

Michael Jeffries, chief executive of the company said, "We continued to be confronted with very challenging conditions during the second quarter."

The worst performer was its Hollister chain, which witnessed comparable store sales to plunge by 33%. Ruehl chain was the second worst performer with 31% decline.

It may be noted here that Abercrombie was being criticized for clinging to high prices at a time when many other retailers were offering discounts.

Now, the company has plans to lower the average prices in the existing and approaching quarters of the running year.

In the recent trading, shares of the company soared to $33.95, up 3%.