Home / Knowledge / News / Apparel/Garments / Tough environment lowers ANF's performance in Q4
Tough environment lowers ANF's performance in Q4
16
Feb '12
Abercrombie & Fitch Co reported unaudited results which reflected net income of $19.6 million and net income per diluted share of $0.22 for the thirteen weeks ended January 28, 2012, compared to net income of $92.6 million and net income per diluted share of $1.03 for the thirteen weeks ended January 29, 2011.

The Company also reported net income of $127.7 million and net income per diluted share of $1.43 for the fifty-two weeks ended January 28, 2012, compared to net income of $150.3 million and net income per diluted share of $1.67 for the fifty-two weeks ended January 29, 2011.

Excluding charges for impairments and write-downs of store-related long-lived assets, charges related to store closures and lease exits, and other charges associated with legal settlements during the quarter and with a change in intent regarding the Company's auction rate securities, the Company reported adjusted, non-GAAP net income per diluted share of $1.12 for the thirteen weeks ended January 28, 2012 and $2.31 for the fifty-two weeks ended January 28, 2012.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:

"Our results for the fourth quarter were below our expectations in an extremely challenging environment. However, we are confident that we are on track with our long term strategy of leveraging the international appeal of our iconic brands to build a highly profitable, sustainable, global business. The overall economics of our business in Europe, in our U.S. tourist stores and in our DTC business remain very strong."

Net sales for the thirteen weeks ended January 28, 2012 increased 16% to $1.329 billion from $1.149 billion for the thirteen weeks ended January 29, 2011. Total U.S. sales, including direct-to-consumer sales, increased 4% to $962.2 million. Total international sales, including direct-to-consumer sales, increased 62% to $366.6 million. Total Company direct-to-consumer sales, including shipping and handling, increased 41% to $212.3 million.

Total comparable store sales for the quarter were flat to last year. By brand, comparable store sales decreased 4% for Abercrombie & Fitch, decreased 3% for abercrombie kids and increased 2% for Hollister Co. Total sales by brand were $504.0 million for Abercrombie & Fitch, $123.9 million for abercrombie kids and $675.3 million for Hollister Co.

The gross profit rate for the fourth quarter was 56.1%, 750 basis points lower than last year's fourth quarter gross profit rate. The decrease in the gross profit rate was driven primarily by an increase in average unit cost combined with lower than expected sales and higher markdowns driven by a more aggressive promotional environment than anticipated.

Stores and distribution expense for the fourth quarter was $602.1 million, or 45.3% of net sales. Excluding charges for impairments and write-downs of store-related long-lived assets of $82.7million and charges related to store closures and lease exits of $19.0 million, stores and distribution expense for the fourth quarter was $500.5 million or 37.7% of sales. Excluding the effect of store-related asset impairment charges and store closure charges, the stores and distribution expense rate was flat to last year.


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search