Pricey Abercombie & Fitch a turn-off for teens

Pricey teen fashion phenomenon Abercrombie & Fitch is rapidly falling out of style. The company, whose logo-emblazoned hoodies cost upwards of £68, admitted sales of its clothes crashed 10 per cent in the last quarter.

Its Hollister brand's sales were down by 13 per cent. Analysts said overpriced preppy fashion sales have come off the boil dramatically on both sides of the Atlantic as price-conscious teenagers have fled to European favourites such as H&M and Zara as they save their spending money for electronics instead. Shares in Abercrombie fell by as much as 21 per cent on Wall Street as investors reacted with shock to the poor figures announced.

Separately, the owner of the British Superdry fashion brand has signed a deal with a local franchise partner to launch stores in Turkey.