"This success was driven by our focus on core sportswear categories such as denim and knits across all brands and our determination to be the leading aspirational casual apparel company in each of our target customer age groups. It continues to emphasize the aspirational character of our brands by increasing the quality of our product and enhancing the environment, presentation and customer experience in our stores."
This has enabled us to attain significant same store sales increases at the same time that they have eliminated sales promotions and realized double digit increases in average unit prices in Abercrombie & Fitch and abercrombie. They believe that the strategies they have put into place will enable us to continue to grow both our sales and profits in the coming months and years.
Second Quarter Financial Results Net sales for the thirteen weeks ended July 30, 2005 increased 42% to $571.6 million from $401.3 million for the thirteen weeks ended July 31, 2004. The main drivers of the growth were the comparable store sales increase of 30%, and the addition of 84 Hollister stores compared to last year's second quarter and a 97% increase in total denim sales.
The gross margin rate for the quarter was 68.2%, a significant increase over the gross margin of 65.3% in the first quarter, and 66.4% for full fiscal year 2004.
Stores and Distribution expense, as a percentage of sales, increased to 40.6% from 40.0%. This increase is attributable primarily to increased staff and management in the stores which has enabled the Company to greatly improve store operations.
marketing@alchempro.com
