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Retailer Abercrombie & Fitch Co. reports a first-quarter net loss of $26.8 million, compared to a net profit of $62.1 million a year earlier. Sales dropped 24% to $612.1 million from $800.2 million the year before. Gross margin fell 3.5 points to 63.3%. In an effort the win back customers, Abercrombie said it would lower prices.

Affected by a $240.7-million charge related to its acquisition of sports apparel brand Umbro, Nike Inc. reports a 47% drop in third-quarter net profit to $243.8 million, and a 2.3% drop in sales to $4.44 billion. In the present quarter, orders dropped 10% in value to $6.5 billion from last year's $7.2 billion.

Abercrombie & Fitch reports a 68% fourth-quarter drop in net income to $68.4 million, and a 19% drop in sales to $998 million. To cut costs, the company plans to reduce the number of new-store openings in the U.S., and cut capital expenditures to between $165 million to $175 million. Abercrombie's shares rose 10% to close at $22.78 on Friday.

Citing a downturn in the economy, toy manufacturer Mattel Inc. plans to cut 1,000 professional and executive positions from its global workforce thorough layoffs, retirement offers, and hiring freezes. Last month, the company had reported a slight increase in net income to $238.1 million, and a 6% increase in sales to $1.95 billion. Mattel's shares closed down 3% at $14.52 on New York Stock Exchange composite trading on Thursday.

In August, a U.S. federal court ordered MGA Entertainment Inc. to compensate rival toy company Mattel Inc. close to $1 billion for marketing the Bratz line of dolls designed by a Mattel employee and transferred secretly to MGA. In interview, MGA chief Isaac Larian states MGA may negotiate to settle the case with Mattel by paying the company a portion of past sales but will not consider sharing future revenue. Larian also rejects the possibility of transferring rights to Mattel or prospects of a joint venture. The Bratz line is expected to generate $350 million in revenue in 2008.