Home / Knowledge / News / Apparel/Garments / Abercrombie & Fitch posts 1% drop in Q2 FY'13 sales
Abercrombie & Fitch posts 1% drop in Q2 FY'13 sales
22
Aug '13
Abercrombie & Fitch Co. reported unaudited second quarter results which reflected net income of $11.4 million and net income per diluted share of $0.14 for the thirteen weeks ended August 3, 2013, compared to net income of $17.1 million and net income per diluted share of $0.20 for the thirteen weeks ended July 28, 2012. Net income per diluted share for the thirteen weeks ended August 3, 2013 includes $0.02 in charges related to the implementation of the on-going profit improvement initiative.

Second Quarter Summary

Net sales for the thirteen weeks ended August 3, 2013 decreased 1% to $945.7 million from $951.4 million for the thirteen weeks ended July 28, 2012. Including direct-to-consumer, total U.S. sales decreased 8% to $597.3 million. Including direct-to-consumer, total international sales increased 15% to $348.4 million. Total Company direct-to-consumer sales, including shipping and handling, increased 21% to $154.3 million.

Total comparable sales for the quarter, including direct-to-consumer sales, decreased 10% with comparable U.S. sales decreasing 11% and comparable international sales decreasing 7%. Within the quarter, comparable sales were weakest in July.

By brand, including direct-to-consumer, comparable sales decreased 6% for Abercrombie & Fitch, decreased 3% for abercrombie kids, and decreased 13% for Hollister Co. Total sales by brand were $356.6 million for Abercrombie & Fitch, $76.0 million for abercrombie kids and $488.5 million for Hollister Co.

Due to the 53rd week in Fiscal 2012, second quarter comparable sales are compared to the thirteen week period ended August 4, 2012. The thirteen week period ended August 4, 2012 included approximately $44 million of additional sales versus the reported thirteen-week period ended July 28, 2012.

The gross profit rate for the second quarter was 63.9%, 160 basis points higher than last year's second quarter gross profit rate.

Stores and distribution expense for the second quarter was $471.7 million or 49.9% of net sales, up from $458.1 million or 48.1% of net sales last year.  As a percentage of sales, expense savings in store payroll, store management and support and other stores and distribution expense were more than offset by the deleveraging effect of negative comparable sales and higher direct-to-consumer expense.

Marketing, general and administrative expense for the second quarter was $117.6 million, a 6% increase compared to $111.3 million last year. The increase in marketing, general and administrative expense was primarily driven by increases in consulting and other services, including $2.6 million in charges related to the implementation of the profit improvement initiative.

The effective tax rate for the second quarter was 34.7% compared to 27.3% last year.

During the second quarter of Fiscal 2013, the Company repurchased approximately 2.0 million shares of its common stock at an aggregate cost of approximately $99.5 million.

Must ReadView All

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search