Abercrombie's sales dropped for the 14th straight quarter and comparable sales fell a slightly steeper-than-expected 4 percent, mainly due to lower traffic, including from tourists, at its flagship stores. "Comparable sales (will) remain challenging through the second half of the year, with a disproportionate effect from flagship and tourist locations," the company said. Abercrombie, like other teen apparel retailers, has posted a string of sales declines as it struggled to compete with the trendier and often cheaper products at fast-fashion retailers such as H&M and Inditex's Zara.
A car bomb claimed by al Shabaab Islamist militants killed five soldiers outside the president's palace in the Somali capital of Mogadishu and badly damaged two nearby hotels, police said. Reuters witnesses said gunfire could be heard after the explosion and a huge cloud of smoke could be seen above the president's palace, outside which were the remnants of the car and splattered blood. Al Qaeda-linked al Shabaab has claimed responsibility for several recent explosions in Mogadishu, including a car bomb and gun attack last week at a popular beach restaurant in the capital that killed 10 people.