Tags: US | Earns | Abercrombie | & | Fitch

Abercrombie & Fitch Turns Profit, to Close 60 Stores

Tuesday, 17 Aug 2010 08:19 AM

Preppy teen retailer Abercrombie & Fitch Co. returned to a profit in the second quarter as its strategy of lowering some prices boosted sales.

The chain also said Tuesday it will close 60 stores in the U.S. in 2010 as it expands internationally.

Quarterly net income totaled $19.5 million, or 22 cents per share. A year ago the company lost $26.7 million, or 9 cents per share. Earnings were 24 cents per share excluding a charge for closing stores.

Analysts polled by Thomson Reuters, on average, expected a smaller 16 cents-per-share gain.

Revenue rose 17 percent to $745.8 million. Analysts expected $727.7 million.

Revenue in stores open at least a year rose 5 percent, but that improvement follows a 30 percent drop in last year's second quarter. That's considered a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.

In the U.S., Abercrombie plans to open three Abercrombie & Fitch stores; three Abercrombie Kids stores; three of its surf-themed Hollister stores; two Gilly Hicks stores, which sell underwear and sleepwear; and five outlet stores.

It plans to close 60 domestic stores, mainly though lease expirations.

Internationally, the company plans to open namesake stores in Copenhagen, Denmark, and Fukuoka, Japan.

It plans to open 20 international mall-based Hollister stores, down from prior guidance of 25 stores.

In the fourth quarter, it will open a new namesake store in Canada and its first international Gilly Hicks store in the U.K.

Abercrombie & Fitch Co., based in New Albany, Ohio, has lowered some prices to compete with Aeropostale Inc. and American Eagle Outfitters Inc. for teen dollars.

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Preppy teen retailer Abercrombie Fitch Co. returned to a profit in the second quarter as its strategy of lowering some prices boosted sales.The chain also said Tuesday it will close 60 stores in the U.S. in 2010 as it expands internationally.Quarterly net income totaled...
US,Earns,Abercrombie,&,Fitch
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2010-19-17
Tuesday, 17 Aug 2010 08:19 AM
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