Abercrombie & Fitch Reports December Sales Results
January 08 2009 - 8:00AM
PR Newswire (US)
NEW ALBANY, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- Abercrombie
& Fitch (NYSE:ANF) today reported net sales of $539.2 million
for the five-week period ended January 3, 2009, an 18% decrease
from net sales of $657.0 million for the five-week period ended
January 5, 2008. December comparable store sales decreased 24%.
Total Company direct-to-consumer net sales decreased 11% to $45.6
million for the five-week period ended January 3, 2009, compared to
the five-week period ended January 5, 2008. Year-to-date, the
Company reported a net sales decrease of 5% to $3.349 billion from
$3.530 billion last year. Comparable store sales decreased 13% for
the year-to-date period. Year-to-date, the Company reported that
direct- to-consumer net sales increased 4% to $245.0 million.
December 2008 Sales Developments -- Total Company net sales
decreased 18% -- Total Company direct-to-consumer net sales
decreased 11% -- Total Company comparable store sales decreased 24%
-- Abercrombie & Fitch comparable store sales decreased 24% --
abercrombie comparable store sales decreased 29% -- Hollister Co.
comparable store sales decreased 24% -- RUEHL comparable store
sales decreased 26% Based on the impact of current sales trends on
the profitability of a number of Ruehl and other stores, the
Company expects that its fiscal year-end review of long-lived
assets will result in a non-cash impairment charge in the fourth
quarter. Other Developments During the fourth quarter the Company
will record a charge of approximately $10.0 million to tax expense
as a result of the execution of the Chairman and Chief Executive
Officer's new employment agreement on December 19, 2008, which
pursuant to section 162(m) results in the exclusion of previously
recognized tax benefits. Under the previous employment agreement,
the Company recorded deferred tax assets based on the anticipated
delivery of benefits to the CEO in the calendar year following the
year of his retirement. As a result of the new employment
agreement, the CEO will receive the benefits during his new
employment term, therefore the expected tax benefits will no longer
be available. As a result of the charge to tax expense and the
expected non-cash impairment charge, the Company now anticipates
that net income per diluted share for the fourth quarter will be
significantly below the $1.00 to $1.05 per diluted share guidance
previously issued. The Company will report January sales results on
Thursday, February 5, 2009 and fourth quarter earnings on Friday,
February 13, 2009. The Company operated 353 Abercrombie & Fitch
stores, 211 abercrombie stores, 503 Hollister Co. stores, 28 RUEHL
stores and 13 Gilly Hicks stores in the United States at the end of
fiscal December. The Company operates three Abercrombie & Fitch
stores, two abercrombie stores, five Hollister Co. stores in
Canada, and one Abercrombie & Fitch store and two Hollister Co.
stores in London, England. The Company operates e-commerce websites
at http://www.abercrombie.com/, http://www.abercrombiekids.com/,
and http://www.hollisterco.com/ and http://www.ruehl.com/. To hear
the Abercrombie & Fitch pre-recorded December sales message,
please dial (800) 395-0662, or internationally, dial (402)
220-1262. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 A&F cautions that any
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) contained in this Press
Release or made by management of A&F involve risks and
uncertainties and are subject to change based on various important
factors, many of which may be beyond the Company's control. Words
such as "estimate," "project," "plan," "believe," "expect,"
"anticipate," "intend," and similar expressions may identify
forward-looking statements. The following factors, in addition to
those included in the disclosure under the heading "FORWARD-LOOKING
STATEMENTS AND RISK FACTORS" in "ITEM 1A. RISK FACTORS" of
A&F's Annual Report on Form 10-K for the fiscal year ended
February 2, 2008, in some cases have affected and in the future
could affect the Company's financial performance and could cause
actual results for the 2008 fiscal year and beyond to differ
materially from those expressed or implied in any of the
forward-looking statements included in this Press Release or
otherwise made by management: changes in consumer spending patterns
and consumer preferences; the effects of political and economic
events and conditions domestically and in foreign jurisdictions in
which the Company operates, including, but not limited to, acts of
terrorism or war; the impact of competition and pricing; changes in
weather patterns; postal rate increases and changes; paper and
printing costs; market price of key raw materials; ability to
source product from its global supplier base; political stability;
currency and exchange risks and changes in existing or potential
duties, tariffs or quotas; availability of suitable store locations
at appropriate terms; ability to develop new merchandise; ability
to hire, train and retain associates; and the outcome of pending
litigation. Future economic and industry trends that could
potentially impact revenue and profitability are difficult to
predict. Therefore, there can be no assurance that the
forward-looking statements included in this Press Release will
prove to be accurate. In light of the significant uncertainties in
the forward- looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
Company, or any other person, that the objectives of the Company
will be achieved. The forward-looking statements herein are based
on information presently available to the management of the
Company. Except as may be required by applicable law, the Company
assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future changes
make it clear that any projected results expressed or implied
therein will not be realized. DATASOURCE: Abercrombie & Fitch
CONTACT: Investor Inquiries: Eric Cerny, Manager, Investor
Relations, +1-614-283-6385 Web site: http://www.abercrombie.com/
http://www.abercrombiekids.com/
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