Shares in Abercrombie & Fitch plunged as much as 20% this afternoon after profits at the the retailer plunged.

Abercrombie said profits in the three months to the end of June slumped to US$11.4 million from US$17.1 million in the same quarter last year. Total sales dropped 1% to US$945 million.

The company blamed the drop on weak sales in the US. The shares lost $8.27 to $38.53 in early trading in the US cutting the company's value to $3 billion.

"The second quarter was more difficult than expected due to weaker traffic and continued softness in the female business, consistent with what others have reported. In that context we are planning sales, inventory and expenses conservatively for the remainder of the year" Abercrombie chief executive Mike Jeffries said in a statement.

The company also withdrew profit forecast for the year profits "due to a lack of visibility given recent traffic trends".

Abercrombie is closing between 40 and 50 shops in the US to cut costs. Sales in the US dropped 10% during the quarter.

However overseas its sales rose 15%, boosted by new store openings.

Abercrombie has one outlet in Dublin city centre. It also owns the Hollister brand which has one shop in the Dundrum Town Centre in the capital.