Home / Knowledge / News / Apparel/Garments / Fall in US sales trip Abercrombie & Fitch Q2 revenues
Fall in US sales trip Abercrombie & Fitch Q2 revenues
29
Aug '14
Led by a decline of 9% in US sales, net sales at NYSE-listed apparel retailer Abercrombie & Fitch Co slipped 6% year on year in the thirteen weeks to August 2, 2014.

In the second fiscal quarter of 2014, revenues at Abercrombie & Fitch Co. fell 6% from a year ago quarter to $891 million, of which US sales went down 9% to $546 million, while global turnover declined by a marginal 1% to $345 million.

Excluding certain charges, in second quarter of 2014, Abercrombie reported adjusted net income of $14.1 million for diluted earnings per share of $0.19 compared to adjusted net income of $13.0 million and diluted earnings per share of $0.16 for the second quarter of last year.

Abercrombie said, US comparable store sales for the second quarter of 2014 showed slight sequential improvement, while global comparable store sales declined sequentially, particularly in Europe.

The retailer added that, direct-to-consumer comparable sales were positive in the second quarter, but by a lower percentage than in the first quarter.

Net sales brand-wise for the second quarter of 2014 were $349.6 million for Abercrombie & Fitch, $70.9 million for abercrombie kids and $464.6 million for Hollister Co.

Comparable sales by brand, including direct-to-consumer, decreased 1% for Abercrombie & Fitch, decreased 6% for abercrombie kids, and decreased 10% for Hollister Co.

The gross profit rate for the second quarter of 2014 stood at 62.1%, 180 basis points lower than last year, from an increase in promotional activity, Abercrombie said.

Stores and distribution expense for the second quarter of 2014 touched $426.3 million, down from $471.7 million last year. They included $1.2 million of charges related to the profit improvement initiative.

However, stores and distribution expense rate for the quarter fell to 47.9% of net sales, down 200 basis points from last year, driven primarily by savings in store payroll partially offset by higher direct-to-consumer expense.

Marketing, general and administrative expense for the second quarter totalled $111.0 million, down 6% to $117.6 million last year. These too included $0.7 million of charges related to the profit improvement initiative and also due to a reduction in compensation expense.

Net other operating income was $4.3 million for the second quarter of 2014, compared to $4.4 million in second quarter of last year, both of which included insurance recoveries. The effective tax rate for the second quarter of 2014 was 26.3% compared to 34.7% for last year.

Abercrombie & Fitch ended the second quarter with $550 million in inventory at cost, down 13% versus the prior year second quarter.

Mike Jeffries, CEO at Abercrombie & Fitch said, “We are confident that the evolution of our assortment will drive further improvements going forward, in particular as we move past the headwind of adverse likes in our logo business, as we work to strategically reduce that element, in our assortment.”

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Steve Cole
Xerium Technologies

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

Kevin Nelson
TissueGen

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

Eric Scholler
Groz-Beckert

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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