Abercrombie & Fitch News
Abercrombie & Fitch Reports First Quarter Results;
First Quarter Highlights — Total Company net sales increased 8% to $800.2 million; comparable store sales decreased 3% — Total direct-to-consumer net sales increased 44% to $62.5 million — Abercrombie & Fitch net sales increased 7% to $357.7 million; Abercrombie & Fitch comparable store sales increased 3% — abercrombie net sales increased 8% to $96.2 million; abercrombie comparable store sales decreased 7% — Hollister Co. net sales increased 7% to $330.2 million; Hollister comparable store sales decreased 8% — RUEHL net sales increased 27% to $13.0 million; RUEHL comparable store sales decreased 17% — Net income for the first quarter increased 3% to $62.1 million — Net income per diluted share in the first quarter increased 6% to $0.69
"Our first quarter financial results demonstrate our ability to effectively position our brands. Despite a tough selling environment, we produced bottom-line growth while still remaining true to the aspirational positioning of our brands. We continue to focus on improving the quality of our product and the emotional store experience, which gives us our competitive advantage and is critical to our long-term sustainability."
First Quarter Financial Results
Net sales for the thirteen weeks ended
The gross profit rate for the quarter was 66.8%, up 120 basis points compared to last year. The improvement in gross profit rate was due to a higher initial markup rate and lower shrink rate, partially offset by a higher markdown rate versus last year.
Stores and Distribution expense, as a percentage of sales, increased 120 basis points to 42.7% from 41.5%. The increase in rate versus last year resulted from the inability to leverage fixed expenses due to the comparable store sales decline. Contributing to the unfavorable rate were minimum wage rate increases and pre-opening expenses associated with the
Marketing, General and Administrative expense, as a percentage of sales, increased 100 basis points to 13.1% from 12.1%. The increase in rate versus last year was driven by increases in home office payroll and outside services expense rates, partially offset by decreases in travel expense rate.
Operating income for the first quarter decreased 2% to
Interest income for the first quarter increased to
The effective tax rate for the first quarter was 36.8% compared to 37.7% last year. The rate favorability was primarily attributed to higher tax exempt investment income.
Net income for the first quarter increased 3% to
Net income per diluted share for the first quarter increased 6% to
2008 Outlook
The Company reaffirmed its previously disclosed earnings guidance which stated it expects net income per diluted share for the first-half of Fiscal 2008 to be in the range of
The Company plans total capital expenditures for Fiscal 2008 to now be between
For Fiscal 2008, the Company now expects to increase gross square-footage by approximately 10%, revised from the previous estimate of 11%. In
Other Developments
The Board of Directors declared a quarterly cash dividend of
The Company plans to open its second European Abercrombie & Fitch flagship in 2009. The 16,000 square foot store will be located at Kobmagergade 11,
The Company plans to open its first abercrombie flagship on Fifth Avenue in
The Company operated 353 Abercrombie & Fitch stores, 202 abercrombie stores, 457 Hollister Co. stores, 23 RUEHL stores and five
Today at
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by management of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. The following factors, in addition to those included in the disclosure under the heading "FORWARD-LOOKING STATEMENTS AND RISK FACTORS" in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form 10-K for the fiscal year ended
Abercrombie & Fitch Co. Condensed Consolidated Statements of Income (Unaudited) Thirteen Weeks Ended May 3, 2008 and Thirteen Weeks Ended May 5, 2007 (in thousands, except per share data) ACTUAL ACTUAL 2008 % of Sales 2007 % of Sales Net Sales $800,178 100.0% $742,410 100.0% Cost of Goods Sold 266,012 33.2% 255,141 34.4% Gross Profit 534,166 66.8% 487,269 65.6% Total Stores and Distribution Expense 341,788 42.7% 308,238 41.5% Total Marketing, General and Administrative Expense 104,698 13.1% 90,175 12.1% Other Operating Income, Net (2,941) -0.4% (3,854) -0.5% Operating Income 90,621 11.3% 92,710 12.5% Interest Income, Net (7,646) -1.0% (3,711) -0.5% Income Before Income Taxes 98,267 12.3% 96,421 13.0% Income Tax Expense 36,151 4.5% 36,340 4.9% Effective Rate 36.8% 37.7% Net Income $62,116 7.8% $60,081 8.1% Net Income Per Share: Basic $0.72 $0.68 Diluted $0.69 $0.65 Weighted-Average Shares Outstanding: Basic 86,335 87,746 Diluted 90,138 92,292 Abercrombie & Fitch Co. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) ASSETS May 3, 2008 February 2, 2008 Current Assets Cash and Equivalents $187,217 $118,044 Marketable Securities - 530,486 Receivables 68,643 53,801 Inventories 347,628 333,153 Deferred Income Taxes 38,160 36,128 Other Current Assets 72,346 68,643 Total Current Assets 713,994 1,140,255 Property and Equipment, Net 1,341,259 1,318,291 Marketable Securities 318,136 - Other Assets 112,454 109,052 TOTAL ASSETS $2,485,843 $2,567,598 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable and Outstanding Checks $161,123 $151,798 Accrued Expenses 208,777 280,910 Deferred Lease Credits 42,018 37,925 Income Taxes Payable 6,459 72,480 Total Current Liabilities 418,377 543,113 Long-Term Liabilities Deferred Income Taxes 23,179 22,491 Deferred Lease Credits 218,902 213,739 Other Liabilities 181,068 169,942 Total Long-Term Liabilities 423,149 406,172 Total Shareholders' Equity 1,644,317 1,618,313 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,485,843 $2,567,598
SOURCE Abercrombie & Fitch
Search Our News Using Google Search
Can't find what you want? Try using Google:
