Home / Knowledge / News / Apparel/Garments / Abercrombie & Fitch Q1'FY14 net loss reaches $23.7mn
Abercrombie & Fitch Q1'FY14 net loss reaches $23.7mn
29
May '14
Abercrombie & Fitch Co. reported unaudited results that reflected a GAAP net loss of $23.7 million and net loss per basic and diluted share of $0.32 for the thirteen weeks ended May 3, 2014, compared to a GAAP net loss of $7.2 million and net loss per basic and diluted share of $0.09 for the thirteen weeks ended May 4, 2013.
 
Excluding charges related to the Gilly Hicks brand restructuring, the Company's profit improvement initiative, and certain corporate governance matters, the Company reported an adjusted non-GAAP net loss of $13.0 million and net loss per basic and diluted share of $0.17 for the quarter.
 
Mike Jeffries, Chief Executive Officer, said, "In what remains a difficult teen retail environment, we are pleased that earnings for the quarter were in line with our expectations.  Overall sales for the quarter decreased 2%, which included strong growth in our direct-to-consumer business.  In addition, comparable sales continued to head in the right direction, and included significant sequential  improvement in our female business and our Abercrombie & Fitch brand as a whole.
 
"We remain focused on returning to growth, and believe we are taking the right steps and are on course to accomplish that goal. As we look forward to the rest of 2014, we have made significant improvements throughout the organization to better align us for success, and we are energized by the opportunities ahead of us."
 
Additional First Quarter Results Commentary
The gross profit rate for the first quarter was 62.2%, 370 basis points lower than last year, reflecting a higher mix of fall merchandise clearance selling versus last year and an increase in promotional activity.
 
Stores and distribution expense for the first quarter was $417.6 million, down from $449.1 million last year. The stores and distribution expense rate for the quarter was 50.8% of net sales, down 270 basis points from last year, driven primarily by savings in store payroll partially offset by higher direct-to-consumer expense and $0.8 million of charges related to the profit improvement initiative.
 
Marketing, general and administrative expense for the first quarter was $123.6 million, a 4% increase compared to $118.8 million last year. Marketing, general and administrative expense for the quarter included $2.3 million of charges related to the profit improvement initiative and $6.9 million of charges related to certain corporate governance matters.   Excluding those charges, marketing, general and administrative expense was $114.4 million, a 4% decrease compared to last year.  A decrease in compensation expense was partially offset by an increase in marketing expense.
 
Click here to view full results.
 

Abercrombie & Fitch Co

Must ReadView All

Apparel/Garments | On 28th Sep 2016

CMAI inks MoU with Chinese textile trade body CCCT

Indian apex clothing association, the Clothing Manufacturers...

Textiles | On 28th Sep 2016

India sees largest gain on WEF’s Competitiveness Index

India has shown the largest gain made by any country on the World...

Textiles | On 28th Sep 2016

Oerlikon to show new yarns and fibres at ITMA+CITME expo

The Oerlikon Manmade Fibers segment, the world market leader for...

Interviews View All

Awen Delaval
Samatoa

Pratik Bachkaniwala
Palod Himson Machines

Eamonn Tighe
Nature Works LLC

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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 2016

September 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search