Home / Knowledge / News / Apparel/Garments / Abercrombie & Fitch slips into losses in Q3 FY'14
Abercrombie & Fitch slips into losses in Q3 FY'14
22
Nov '13
Abercrombie & Fitch Co. reported unaudited third quarter results that reflected a net loss of $15.6 million and net loss per basic and diluted share of $0.20 for the thirteen weeks ended November 2, 2013, compared to net income of $84.0 million and net income per diluted share of $1.02 for the thirteen weeks ended October 27, 2012.

Excluding charges related to restructuring plans for Gilly Hicks, other store asset impairment charges, and charges related to its profit improvement initiative, the Company reported adjusted non-GAAP net income of $40.5 million and net income per diluted share of $0.52. Results for the quarter included a tax benefit of $0.06 per share related to certain discrete tax matters.

Third Quarter Summary

Net sales for the thirteen weeks ended November 2, 2013 decreased 12% to $1.033 billion from $1.170 billion for the thirteen weeks ended October 27, 2012. Including direct-to-consumer, total U.S. sales decreased 18% to $674.9 million. Including direct-to-consumer, total international sales increased 2% to $358.4 million. Total company direct-to-consumer sales, including shipping and handling, increased 10% to $174.6 million.

Total comparable sales for the quarter, including direct-to-consumer sales, decreased 14% with comparable U.S. sales decreasing 14% and comparable international sales decreasing 15%. Total direct-to-consumer comparable sales increased 11% for the quarter. Within the quarter, comparable sales were weakest in August and September.

Due to the 53rd week in Fiscal 2012, third quarter comparable sales are compared to the thirteen week period ended November 3, 2012. The thirteen week period ended November 3, 2012 had approximately $23 million less in sales versus the reported thirteen week period ended October 27, 2012.

By brand, including direct-to-consumer, comparable sales decreased 13% for Abercrombie & Fitch, decreased 4% for abercrombie kids, and decreased 16% for Hollister Co. Total sales by brand were $387.8 million for Abercrombie & Fitch, $89.9 million for abercrombie kids and $534.0 million for Hollister Co.

The gross profit rate for the third quarter was 63.0%, 130 basis points lower than last year's third quarter gross profit rate. Gross profit included $5.3 million of inventory write-downs associated with Gilly Hicks, primarily related to the store closures.

Stores and distribution expense for the third quarter was $564.9 million, up from $496.9 million last year.  Stores and distribution expense for the third quarter of Fiscal 2013 included $40.1 million of charges related to the restructuring of the Gilly Hicks brand and $43.6 million of other store asset impairment charges.

Excluding these charges the stores and distribution expense rate was 46.5% of net sales compared to 42.5% of net sales last year. 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 third quarter was $131.3 million, compared to $123.4 million last year. Marketing, general and administrative expense for the third quarter of Fiscal 2013 included $7.0 million of charges related to the profit improvement initiative and $4.6 million of charges related to the restructuring of the Gilly Hicks brand. Excluding these charges, marketing, general and administrative expense was $119.8 million, a decrease of 3% from last year.

Other operating income for the third quarter was $9.9 million compared to $1.2 million last year. The increase in other operating income was primarily driven by insurance recoveries of approximately $6.0 million.

Abercrombie & Fitch


Must ReadView All

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Prime Minister Narendra Modi dedicating the Deendayal Hastkala Sankul to the nation, in Varanasi, Uttar Pradesh on September 22, 2017. Courtesy: PIB

Textiles | On 25th Sep 2017

Handicrafts trade facilitation centre opens in Varanasi

Prime Minister Narendra Modi dedicated the Deendayal Hastkala Sankul, ...

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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