Abercrombie & Fitch Co reported unaudited results which reflected record second quarter net income of $81.3 million and net income per diluted share of $0.88 for the thirteen weeks ended August 4, 2007, a 24% increase over net income of $65.7 million and a 22% increase over $0.72 per diluted share for the thirteen weeks ended July 29, 2006.
Second Quarter Developments: • Total Company net sales increased 22% to $804.5 million; comparable store sales decreased 2% • Total direct-to-consumer net sales increased 66% to $45.6 million • Abercrombie & Fitch net sales increased 15% to $363.9 million; Abercrombie & Fitch comparable store sales decreased 2% • abercrombie net sales increased 30% to $94.5 million; abercrombie comparable store sales increased 2% • Hollister Co. net sales increased 27% to $334.4 million; Hollister comparable store sales decreased 3% • RUEHL net sales increased 71% to $11.7 million; RUEHL comparable store sales increased 2% • Net income for the second quarter increased 24% to $81.3 million • Net income per diluted share in the second quarter increased 22% to $0.88 • The Company announced initial plans for Abercrombie & Fitch expansion in Italy, France, Germany, Spain, Denmark and Sweden • The Company announced plans for an Abercrombie & Fitch Tokyo flagship in 2009
Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co said: "I am extremely pleased with therecord financial results we posted this quarter. Our success can be attributed largely to the fact that we have created a consistent business that is able to generate strong results."
"Our company is uniquely positioned, with each brand maintaining only the highest standards and supported by defined and proven processes that are continuously audited. The drive for constant improvement in standard, process and audit will help us to maintain our leadership position over the long term."
Net sales for the thirteen weeks ended August 4, 2007 increased 22% to $804.5 million from $658.7 million for the thirteen weeks ended July 29, 2006.
Total Company direct-to-consumer net sales increased 66% to $45.6 million for the thirteen-week period ended August 4, 2007, compared to the thirteen-week period ended July 29, 2006. Total Company comparable store sales decreased 2% for the thirteen weeks ended August 4, 2007, compared to the thirteen weeks ended August 5, 2006.
The gross profit rate for the quarter was 68.8%, down 30 basis points compared to last year. The decrease in gross profit rate was primarily due to a higher markdown rate, partially offset by higher initial markup.
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