The New Albany, Ohio-headquartered group said comparable sales fell by 5% in the fourth-quarter, slightly worse than the 4.9% consensus decline forecast by analysts.
It added that Abercrombie & Fitch brand sales saw a 13% decline in the quarter, and were down 11% in total for 2016, while sales of the Hollister brand rose 1% and were flat across the year.
The retailer said its net sales fell 7% to US$1.04bn in the fourth quarter to January 28, down from US$1.11bn a year earlier
It added that its quarterly net income dropped to US$48.8mln or 71 US cents per share, against analyst expectations for 75 US cents, down from US$57.7mln or 85 US cents per share in the same quarter of 2015.
Fran Horowitz, Abercrombie & Fitch’s chief executive officer said: "Results for the quarter reflect a still challenging and competitive retail environment, however we continue to make progress on our strategic priorities.”
He added: “While the environment is likely to remain challenging in 2017, we have a strong balance sheet and continue to aggressively manage costs in order to continue our investments in strategies to provide our customers with compelling new experiences through a clearly defined brand voice, to position our business for sustainable growth."