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Ohio-based ANF posts higher Q1 profit
16 May '08
3 min read
First Quarter Financial Results:
Net sales for the thirteen weeks ended May 3, 2008 increased 8% to $800.2 million from $742.4 million for the thirteen weeks ended May 5, 2007.
Total Company direct-to-consumer net sales increased 44% to $62.5 million for the thirteen week period ended May 3, 2008, compared to the thirteen week period ended May 5, 2007. Total Company comparable store sales decreased 3% for the thirteen weeks ended May 3, 2008.
The gross profit rate for the quarter was 66.8%, up 120 basis points compared to last year. The improvement in gross profit rate was due to a higher initial markup rate and lower shrink rate, partially offset by a higher markdown rate versus last year.
Stores and Distribution expense, as a percentage of sales, increased 120 basis points to 42.7% from 41.5%. The increase in rate versus last year resulted from the inability to leverage fixed expenses due to the comparable store sales decline.
Contributing to the unfavorable rate were minimum wage rate increases and pre-opening expenses associated with the Tokyo flagship lease. Partially offsetting the increases was a reduction in variable expenses including payroll hours, which were reduced on a per store basis.
Marketing, General and Administrative expense, as a percentage of sales, increased 100 basis points to 13.1% from 12.1%. The increase in rate versus last year was driven by increases in home office payroll and outside services expense rates, partially offset by decreases in travel expense rate.
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Net sales for the thirteen weeks ended May 3, 2008 increased 8% to $800.2 million from $742.4 million for the thirteen weeks ended May 5, 2007.
Total Company direct-to-consumer net sales increased 44% to $62.5 million for the thirteen week period ended May 3, 2008, compared to the thirteen week period ended May 5, 2007. Total Company comparable store sales decreased 3% for the thirteen weeks ended May 3, 2008.
The gross profit rate for the quarter was 66.8%, up 120 basis points compared to last year. The improvement in gross profit rate was due to a higher initial markup rate and lower shrink rate, partially offset by a higher markdown rate versus last year.
Stores and Distribution expense, as a percentage of sales, increased 120 basis points to 42.7% from 41.5%. The increase in rate versus last year resulted from the inability to leverage fixed expenses due to the comparable store sales decline.
Contributing to the unfavorable rate were minimum wage rate increases and pre-opening expenses associated with the Tokyo flagship lease. Partially offsetting the increases was a reduction in variable expenses including payroll hours, which were reduced on a per store basis.
Marketing, General and Administrative expense, as a percentage of sales, increased 100 basis points to 13.1% from 12.1%. The increase in rate versus last year was driven by increases in home office payroll and outside services expense rates, partially offset by decreases in travel expense rate.
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Abercrombie & Fitch Co.
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