US: Abercrombie & Fitch Q3 profit jumps 40.5%
- Q3 net income surges 40.5% to $71.5m
- Net sales rose 9% to $1.17bn from $1.08bn
- Comparable store sales fell 3% in the quarter
Improvements in both its domestic and international businesses have helped Abercrombie & Fitch Co to a 40.5% jump in third quarter profit, the teen-apparel retailer said today (14 November).
Net income surged to $71.5m or $0.87 per share in the three months to 27 October, up from $50.9m last year.
Net sales rose 9% to $1.17bn from $1.08bn, with US sales flat at $818.6m and international sales surging 37% to $351.1m.
Total company direct-to-consumer sales increased 20% to $158.3m, with a 15% rise in US sales and a jump of 31% internationally.
Comparable store sales fell 3% in the quarter, with a drop of 4% for Abercrombie & Fitch, 3% for Abercrombie Kids, and 1% for Hollister Co.
Lower average unit costs contributed to a 240 basis points rise in gross profit rate to 62.5%.
"These significantly improved financial results reflect progress on several fronts over the past quarter," said CEO Mike Jeffries.
"Our US chain store business posted healthy growth on top of a strong quarter a year ago, and we saw sequential trend improvement in our international business."
The results are in contrast to its second quarter, when the retailer saw net profit fall 51.6% on slower sales in its international stores and the first drop in US same-store sales for three years.
It had earlier earmarked a further 180 underperforming stores to close over the next few years to improve efficiency and reduce expenses - on top of the 135 stores closed in the past two years.
And in September Abercrombie & Fitch hired investment banking firm Goldman Sachs to fend off pressure from investors.
The retailer, which operates a total of 1,067 stores, now says it expects full year earnings per share of $2.85 to $3.00, based on a mid single digit percentage drop in fourth quarter same-store sales.
Teen clothing retailer Abercrombie & Fitch has confirmed plans to close up to 50 stores in the US this year as it revealed a downbeat forecast for the first quarter. ...
Abercrombie and Fitch is investigating calls for its clothes to be taken off the shelves in Germany after tests revealed high levels of cancer-causing chemical Benzidine....
Teen clothing retailer Abercrombie & Fitch has promoted Amy Zehrer to executive vice president of stores....
- Euro decline weighs on Turkish clothing industry
- Supply chain mapping using the Bitcoin blockchain
- Mexico makers see rise in exports and local demand
- VF Corp confirms interest in Africa sourcing
- Asian union development and the Western response
- UK retailers to answer over human trafficking
- LF Corp to streamline planning and sourcing
- Clothing a top category for mass personalisation
- New dye-sublimation printers for sportswear
- Euratex raises rules of origin issues in TPP talks
- Ethiopia – the emerging textile and clothing industry
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Management briefing: Factory safety and auditing: The key challenges
- Global market review of workwear - forecasts to 2019
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects