THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Abercrombie & Fitch reports drop in net profit

Preppy fashion retailer Abercrombie & Fitch reported a fall in profit for its second quarter as its clothing sales declined in the US.

GENERAL MERCHANDISE

Abercrombie & Fitch reports drop in net profit

Mike Jeffries, the company's CEO, said: "The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter. In particular, we saw a further deceleration in the trend in our international stores, while our U.S. chain stores also comped negatively for the quarter for the first time since 2009."

In the thirteen weeks to 28 July 2012, net income dropped to $15.52 million or $0.19 per share from $32.03 million or $0.35 per share in the prior year. However there was a modest increase in net sales which rose 4% to $951.41 million from $916.76 million. 

Including direct-to-consumer sales, total US sales decreased by 5% to $648.0 million while international sales increased 31% to $303.4 million. Total company direct-to-consumer sales, including shipping and handling, increased 25% to $127.7 million.

Comparable store sales in the US fell 10%, with an 11% drop for Abercrombie & Fitch, 10% decline for Abercrombie Kids, and a 10% decrease for Hollister.

Higher costs affected gross profit while an increase in marketing and general administrative expenses reduced operating income. 

Abercrombie & Fitch said earlier this month that it now expects to earn between $2.50 and $2.75 per share for the year after previously forecasting between $3.50 and $3.75 per share.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing