US: A&F to expand global reach on strong Q4
- Q4 profit surged 95% to $92.6m
- Sales rose 23% to $1.149bn
- Plans to accelerate its overseas expansion
Teen clothing retailer Abercrombie & Fitch Co has nearly doubled its fourth quarter profit thanks to rising domestic and international sales, and says it plans to accelerate its overseas expansion in the year ahead.
The retailer, which operates 1,069 Abercrombie & Fitch, Abercrombie Kids, Hollister Co and Gilly Hicks stores, says it has earmarked $300m to spend on new stores, refreshes and remodels in the coming year. This compares with capital expenditures of $161m in the year just gone.
Abercrombie & Fitch flagship stores are planned in Paris, Madrid, Dusseldorf, Brussels, Dublin and Singapore, along with 30 to 40 international Hollister stores.
The company is also continuing to shut underperforming stores, with around 50 domestic stores likely to go during the year.
The plans were revealed as the retailer said its fourth quarter net income surged 95% to $92.6m or $1.03 per share, from $47.5m or $0.53 per share in the same period a year earlier.
Net sales for the three months to 29 January rose 23% to $1.149bn from $936.0m last time. Comparable store sales increased 13% while direct-to-consumer revenue, which includes internet and catalogue sales, increased 43%.
Domestic sales were up 16% to $919.1m. International sales, meanwhile, surged 61% to $230.3m.
For the full-year, profit soared to $150.3m or $1.67 per share, from just $0.3m or $0.00 per share the year before. Net sales rose 18% to $3.47bn from $2.93bn, and same-store sales were up 7%.
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