After another disappointing quarter of results from Abercrombie & Fitch (ANF), it is fair to question whether this retailer will regain its prominence in the teen and young adult apparel industry. Just a few years ago, ANF was a must for teens who were entering the rebellious stage of their lives. In response to this rebellion, ANF was famous for its provocative advertising aimed at teens in an effort to garner a reputation for fulfilling teens needs of clothing that fits their style.

Fast forward a few years later and ANF appears to be lost with no direction in correlating a strong rebound. In their latest quarter, ANF saw same-stores sales decline at an awful 4% rate. Although analysts were expecting worst, the fact ANF same-stores continue to decline should be worrisome for investors. After establishing goals for an improving second half of the year, ANF management lowered its full-year guidance as they believe the challenges of improving sales will ensue as the fiscal year progresses.

Prior to the earnings report, ANF’s stock enjoyed a solid rebound during the month of July and throughout August, notching upward nearly 26%. Much of this rise was due to investors false hope that the company will post improving numbers during the back-to-school season. As company earnings continue to falter, ANF has swiftly consolidated stores and has aggressively focused on rebranding its image from teen apparel to millennials in their twenties.

One solid area of growth in what was an absolutely tough quarter for ANF was their e-commerce business. E-commerce sales increased but lagging sales in physical store locations continue the narrative of the demise of the mall and physical store shopping.

ANF is presently offering a variety of discounts in an effort to boost sales volume. While the intended goal is to create additional consumer demand, anytime a company discounts significantly over a long period of time indicates they are willing to sacrifice higher profits for increased sales traffic. With retail spending already at anemic levels, offering more enticing discounts might be the only thing holding this retailer up.

ANF is struggling mightily to attract customers, which is never a good sign for a retail company. While many are pegging for an ANF comeback, I would take a conservative approach and wait for better results before pinning my hopes on a turnaround.