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Abercrombie Earnings Rise 3% |
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Author: 123jump.com Staff
123jump.com
Last Update: 12:09 PM EDT May 16 2008
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Abercrombie & Fitch Co., specialty retailer reported first quarter net sales across various store brands increased 8% to $800.2 million compared to $742.4 million in the same period of 2007. Net income increased 3% to $62.1 million or $0.69 per diluted share compared to $60.1 million or $0.65 per share a year ago. Despite worries of the consumer spending slow down, several brands in the chain reported rising same store sales. |
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12:10PM New York – Abercrombie first quarter sales rise 8% and net income increases 3% as consumers keep a tight hold on their wallets.
Abercrombie & Fitch Co., specialty retailer reported first quarter net sales across various store brands increased 8% to $800.2 million compared to $742.4 million in the same period of 2007. Net income increased 3% to $62.1 million or $0.69 per diluted share compared to $60.1 million or $0.65 per share a year ago.
Total direct-to-consumer net sales increased 44% to $62.5 million but comparable store sales in the quarter decreased 3%.
Net sales at various store brands rose between 7% and 27% despite a slowdown in general consumer spending and rising worries related to consumer disposable income. Apparel sales are expected to be hit the hardest as consumers battle rising food and energy costs and banks tighten the mortgage lending.
Abercrombie & Fitch net sales increased 7% to $357.7 million and comparable store sales increased 3%. Abercrombie net sales increased 8% to $96.2 million; comparable store sales decreased 7%. Hollister Co. net sales increased 7% to $330.2 million; comparable store sales decreased 8%. RUEHL net sales increased 27% to $13.0 million; comparable store sales decreased 17%.
The gross profit in the quarter was 66.8%, up 120 basis points compared to last year. Stores and distribution expense, as a percentage of sales, increased 120 basis points to 42.7% from 41.5% a year ago.
Reaffirmed the 2008 earnings outlook
The Company reaffirmed its previously disclosed first half earnings guidance expects net income per diluted share for the first-half of Fiscal 2008 to be in the range of $1.61 to $1.65, representing a 5% to 8% increase in earnings over the first half of Fiscal 2007.
The company plans total capital expenditures for Fiscal 2008 to now be between $410 million and $415 million with approximately $290 million of this amount allocated to new store construction and store remodels.
The Company operated 353 Abercrombie & Fitch stores, 202 abercrombie stores, 457 Hollister Co. stores, 23 RUEHL stores and five Gilly Hicks stores in the United States at the end of the first quarter. The Company also operated three Abercrombie & Fitch stores and three Hollister Co. stores in Canada, and one Abercrombie & Fitch store in London, England.
Abercrombie & Fitch (ANF: chart) stock fell 17 cents to $75.91. |
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