Abercrombie & Fitch Q1FY'13 sales fall 9%

24 May '13

4 min read

Marketing, general and administrative expense for the first quarter was $118.8 million, a 2% increase compared to $116.9 million last year. The increase in marketing, general and administrative expense was due to increases in IT and outside services, partially off-set by decreases in incentive compensation and other compensation related expenses.

The effective tax rate for the first quarter was a benefit of 53.7% compared to a benefit of 29.1% last year. The current year rate reflects a net reduction in reserves resulting from the settlement of tax audits. The Company now expects its full year tax rate in the range of 33% to 34%.

During the first quarter of Fiscal 2013, the Company repurchased approximately 350,000 shares of its common stock at an aggregate cost of approximately $16.3 million.

The Company ended the first quarter with approximately $555.9 million in cash and cash equivalents and borrowings under the Term Loan Agreement of $146.3 million compared to $321.6 million in cash and cash equivalents, $37.9 million in marketable securities and no borrowings last year.

The Company opened four international Hollister chain stores, including its first store in Australia, and a combined Hollister and Gilly Hicks outlet store in the UK, during the quarter.

Abercrombie & Fitch

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