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

Courtesy: VF Corporation

Apparel/Garments | On 5th May 2016

VF Corp’s Q1 2016 revenue up 2% to $2.8 billion

VF Corporation reported a rise of 2 per cent in its total revenue to...

Textiles | On 5th May 2016

Brazilian cotton prices rise nearly 10% in April

Firm demand, decrease in supply from important cotton growing...

Apparel/Garments | On 5th May 2016

Kishore Biyani named Future Retail’s vice-chairman

Future Retail has appointed its Independent Director VK Chopra as...

Interviews View All

Kishan Kashiwala
Spinning King (India) Limited.

How has been the development in the area of fibres made from natural...

Pierre Wiertz
EDANA

EDANA recently collaborated with ANNA to facilitate free trade between...

C Kamatchisundaram
Voltas Textile Machinery Division

How the demand for textile machines in India? How is the gap between...

Mr. Narendra Dalmia
Strata Geosystems (India) Pvt. Ltd.

Mr. Narendra Dalmia has a experience of about 35 years in a wide variety...

Dr Geoff Collins
Lenzing Fibers (Hong Kong) Ltd

The Lenzing Group The Lenzing Group is an international group of...

Ashok Desai
Bombay Textile Research Association

<b><i>Bombay Textile Research Association (BTRA) is a leading name in...

Jay Ramrakhiani
Occasions Elegance Wear

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
April 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search