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Tough environment lowers ANF's performance in Q4
16 Feb '12
5 min read
Net income was $19.6 million and net income per diluted share was $0.22 for the thirteen weeks ended January 28, 2012, compared to net income of $92.6 million and net income per diluted share of $1.03 for the comparable period last year. The results for the thirteen weeks ended January 28, 2012 included charges for impairments and write-downs of store-related long-lived assets of $0.60 per diluted share, charges related to store closures and lease exits of $0.13 per diluted share, and other charges associated with legal settlements during the quarter and with a change in intent regarding the Company's auction rate securities of $0.17 per diluted share.
Net sales for the fifty-two weeks ended January 28, 2012 increased 20% to $4.158 billion from $3.469 billion for the fifty-two weeks ended January 29, 2011. U.S. sales, including direct-to-consumer sales, increased 10% to $3.108 billion. International sales, including direct-to-consumer sales, increased 63% to $1.050 billion. Total Company direct-to-consumer sales, including shipping and handling, increased 36% to $552.6 million.
Total comparable store sales for the fifty-two weeks increased 5% to last year. By brand, comparable store sales increased 3% for Abercrombie & Fitch, 4% for abercrombie kids and 8% for Hollister Co. Total sales by brand were $1.665 billion for Abercrombie & Fitch, $398.0 million for abercrombie kids and $2.022 billion for Hollister Co.
The gross profit rate for the fiscal year was 60.6%, 320 basis points lower than last year's gross profit rate. The decrease in the gross profit rate was driven primarily by an increase in average unit cost combined with higher markdowns.
Stores and distribution expense for the fiscal year was $1.888 billion, or 45.4% of net sales. Excluding charges for impairments and write-downs of store-related long-lived assets of $82.7 million and charges related to store closures and lease exits of $19.0 million, stores and distribution expense for the fiscal year was $1.787 billion or 43.0% of sales. The decrease in the adjusted stores and distribution expense rate was driven by lower store occupancy costs as a percentage of net sales. Included in stores and distribution expense in Fiscal 2011 is $16.0 million of accelerated depreciation related to the consolidation of the Company's two U.S. distribution centers.
With regard to 2012, the Company now projects earnings per share in the range of $3.50 to $3.75. In Fiscal 2012, the Company expects to open five Abercrombie & Fitch flagship locations in Hamburg, Hong Kong, Munich, Dublin and Amsterdam as well as an abercrombie kids flagship in London. The Munich and Amsterdam locations will include an abercrombie kids store. The Company expects to open close to 40 international Hollister stores throughout the year.
Based on current new store plans and other planned expenditures, the Company expects total capital expenditures for Fiscal 2012 to be approximately $400 million, predominantly related to new stores and investments in the distribution center and direct-to-consumer operations.
Net sales for the fifty-two weeks ended January 28, 2012 increased 20% to $4.158 billion from $3.469 billion for the fifty-two weeks ended January 29, 2011. U.S. sales, including direct-to-consumer sales, increased 10% to $3.108 billion. International sales, including direct-to-consumer sales, increased 63% to $1.050 billion. Total Company direct-to-consumer sales, including shipping and handling, increased 36% to $552.6 million.
Total comparable store sales for the fifty-two weeks increased 5% to last year. By brand, comparable store sales increased 3% for Abercrombie & Fitch, 4% for abercrombie kids and 8% for Hollister Co. Total sales by brand were $1.665 billion for Abercrombie & Fitch, $398.0 million for abercrombie kids and $2.022 billion for Hollister Co.
The gross profit rate for the fiscal year was 60.6%, 320 basis points lower than last year's gross profit rate. The decrease in the gross profit rate was driven primarily by an increase in average unit cost combined with higher markdowns.
Stores and distribution expense for the fiscal year was $1.888 billion, or 45.4% of net sales. Excluding charges for impairments and write-downs of store-related long-lived assets of $82.7 million and charges related to store closures and lease exits of $19.0 million, stores and distribution expense for the fiscal year was $1.787 billion or 43.0% of sales. The decrease in the adjusted stores and distribution expense rate was driven by lower store occupancy costs as a percentage of net sales. Included in stores and distribution expense in Fiscal 2011 is $16.0 million of accelerated depreciation related to the consolidation of the Company's two U.S. distribution centers.
With regard to 2012, the Company now projects earnings per share in the range of $3.50 to $3.75. In Fiscal 2012, the Company expects to open five Abercrombie & Fitch flagship locations in Hamburg, Hong Kong, Munich, Dublin and Amsterdam as well as an abercrombie kids flagship in London. The Munich and Amsterdam locations will include an abercrombie kids store. The Company expects to open close to 40 international Hollister stores throughout the year.
Based on current new store plans and other planned expenditures, the Company expects total capital expenditures for Fiscal 2012 to be approximately $400 million, predominantly related to new stores and investments in the distribution center and direct-to-consumer operations.
Abercrombie & Fitch Co
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