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Market Update : 
Abercrombie & Fitch Q1 Earnings Call
Author: 123jump.com Staff
123jump.com
Last Update: 7:12 AM ET May 19 2009


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I just want to say, I know it''s been a really tough quarter and I want to say, I don''t know if congratulations is the right word or thank you for sticking with the DNA of your company, even when times are really tough because so many times when things get difficult you see companies sort of go off the deep end in a direction that''s not in the DNA of the brand. So it''s nice to see you guys are sticking with that. I have two very quick questions. In your opening comments you mentioned you plan to protect the brands and cash on international but you didn''t mention direct, which up until this quarter had been a strong business for you. You had mentioned it on the international side. I was curious about it on the domestic side. And then any update you can give on denim, because even pants in general, you had some cargos and twills that have sort of crept into the store here and there. Your denim inventory has been fairly lean but right. But there are some scary, and what I would call non DNA-appropriate trends out there in denim, like acid-wash, that are working. So I am just curious what your thoughts are about those two sectors and the direct business.

Mike Jeffries

I think we have a real direct-to-consumer opportunity. We''ve been working very hard to make the direct-to-consumer a better reflection of the brands. We''ve been working on the presentation and I think it looks better. We have been looking at better flow in terms of information on newness, key items, and our goal is to make the direct-to-consumer an absolute reflection of the in-store quality and style that we project. We''ve not been there as well as we might. That''s where we''re going but it''s a really good question and we think there is continued real opportunity in direct-to-consumer. On denim, acid-wash might be scary but there''s something to the trend in terms of probably light wash that I would suspect we could twist to our taste level and handwriting. And that''s where we are with the whole business, how do we take trend and put it into our taste level, our quality level, our handwriting. You won''t see anything scary, I promise you, Marni.

Eric Cerny

All right Marni thank you for your questions. As far as our time, that''s going to wrap it up for us. Thank you for joining us on our earnings call this morning.

Mike Jeffries

Thank you.

Operator

Once again ladies and gentlemen this does conclude today’s conference. We do appreciate your participation.


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