US: Abercrombie & Fitch boosts Q2 net by 24%
Abercrombie & Fitch has reported a 24% rise in second quarter profit, helped by sales that were 22% higher than last year.
Net income was $81.3m for the 13 weeks ended 4 August, compared with $65.7m during the same period last year.
Total company net sales rose to $804.5m in quarter, while same-store sales decreased 2%. Abercrombie & Fitch net sales increased 15% to $363.9m, Abercrombie net sales rose 30% to $94.5m. Hollister Co sales were up 27% to $334.4m, and Ruehl sales soared 71% to $11.7m.
The youth apparel company said it plans to expand Abercrombie & Fitch into Italy, France, Germany, Spain, Denmark and Sweden and hopes to open an Abercrombie & Fitch Tokyo flagship in 2009.
Mike Jeffries, chief executive officer and chairman of the board of Abercrombie & Fitch Co, said: "I am extremely pleased with the record financial results we posted this quarter. Our success can be attributed largely to the fact that we have created a consistent business that is able to generate strong results."
The retailer expects net income per diluted share for the second half of fiscal 2007 to be in the range of $3.63 to $3.67, and based upon this guidance sees full year fiscal 2007 net income per diluted share in the range of $5.16 to $5.20. The low-end of the guidance reflects a flat same-store sales scenario for the second half of fiscal 2007, it added.
The fashion firm now operates a total of 362 Abercrombie & Fitch stores, 186 Abercrombie stores, 419 Hollister Co stores and 17 Ruehl stores.
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