Abercrombie & Fitch Co. (NYSE: ANF) reported first-quarter fiscal 2014 results before markets opened Thursday. The specialty retailer posted an adjusted diluted earnings per share (EPS) loss of $0.17 on revenues of $822.43 million. In the same period a year ago, the company reported an EPS loss of $0.09 on revenues of $838.77 million. First-quarter results also compare to the Thomson Reuters consensus estimates for an EPS loss of $0.19 and $798.2 million in revenues.

Same-store sales in the United States fell 9% and direct-to-consumer sales rose 22% for a combined decline of 4%. Same-store sales internationally fell 14% while direct sales rose 37% for a combined decline of 5%. Same-store sales for the company fell 11%, direct sales rose 27% and combined sales fell 4%. Gross margin fell 3.7 points year-over-year to 62.2%

A&F maintained its fiscal year guidance calling for EPS in a range of $2.15 to $2.35. The company did not provide guidance for the second quarter, but the consensus calls for EPS of $0.18 on revenues of $904.03 million. That is a big turnaround, and it might be safe to conclude that A&F does not believe it has a chance of making that much of an improvement in one quarter.

The guidance assumes that full-year same-store sales will fall by 3% to 4% compared with the prior year. Gross margin is also expected to be lower. A&F expects to open 15 full-price stores during the year and approximately eight to ten international and U.S. outlet stores. About 60 to 70 stores will be closed, in addition to the 24 Gully Hicks stores that have already been closed.

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The company’s CEO said:

We remain focused on returning to growth, and believe we are taking the right steps and are on course to accomplish that goal. As we look forward to the rest of 2014, we have made significant improvements throughout the organization to better align us for success, and we are energized by the opportunities ahead of us.

One of those improvements was stripping CEO Mike Jeffries of his role as chairman of the board in late January.

Shares traded up about 8.5%, at $38.15 in a 52-week range of $31.14 to $52.38. The consensus target price for the shares was around $43.00 before the report.

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