Investors and shoppers continue to ditch Abercrombie

The brand has fallen out of favour with young shoppers...

Abercrombie & Fitch shares are on the slide again after the fashion brand's third quarter disappointed and it warned of a challenging holiday season.

Net sales for the third quarter of $822m were down 6% over last year.

Its shares dropped by as much as 15.5% following the publication of the the results.

The brand has struggled to react to changing trends as demand for loud logo-ed casual-ware has shrunk as shoppers turn to more minimalist (and cheaper) fast-fashion alternatives such as H&M, Zara, and Forever 21.

Arthur Martinez, executive chairman, said: "As expected, our third quarter was challenging. While Hollister (its brand aimed at younger shoppers) improved sequentially, it was more than offset by disappointing performance in A&F.

"We were pleased with the progress in Hollister where the comparable sales trend improved throughout the quarter. There continued to be positive response to Hollister's product innovations, emerging categories and overall customer experience and we expect the comparable sales trend to further improve in the fourth quarter."

Abercrombie has been investing in its online offerings and closing under-performing stores.