Home / Knowledge / News / Apparel/Garments / Fall in US sales trip Abercrombie & Fitch Q2 revenues
Fall in US sales trip Abercrombie & Fitch Q2 revenues
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

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Smita Murarka

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

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

Igor Chapurin

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

Pranav Mishra

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search