Hollister Ireland receives 3 million euro cash injection from parent group

A&F Hollister Ireland received the equity investment last month from its Swiss-based parent, Abercrombie & Fitch Europe, according to new company filings.

As reported by the ‘Sunday Times’, the funding will help the Irish arm of the teen apparel group to strengthen the balance sheet of the business, which had capital reserves of 7.6 million euros.

The Irish subsidiary runs a flagship Abercrombie & Fitch store in Dublin city centre and a Hollister store in Dundrum.

In fiscal 2015, A&F Hollister Ireland registered 13.5 million euro in turnover for the year to the end of January 2016, down from 14 million euro the previous year. Profits dropped slightly to 424,500 euro.

In November, the fashion retailer posted a bigger-than-expected drop in quarterly sales, making the company’s stock stumble. Abercrombie’s net sales fell 6.5 percent to 821.73 million dollars (776 million euro), down for the 15th straight quarter.

“While Hollister improved sequentially, it was more than offset by disappointing performance in A&F,” executive chairman Arthur Martinez said in a statement back then.