Abercrombie & Fitch Co.'s (ANF) fiscal first-quarter loss
narrowed as revenue jumped 14%.
The teen-apparel retailer has seen signs of recovery as
increased consumer spending is helping the sector. It's focusing on
making its brands more fashionable after tight-fisted customers
abandoned its $40 logo T-shirts and $90 torn jeans for other styles
and prices. The company has been discounting to drive store sales,
a practice it avoided until last year.
For the quarter ended May 1, Abercrombie's loss narrowed to
$11.8 million, or 13 cents a share, from $59.2 million, or 68
cents, a year earlier. The prior-year quarter included a 41-cent
loss from discontinued operations; the company closed its high-end
Ruehl chain last year.
Revenue jumped 14% to $687.8 million, the company reported last
month. Same-store sales increased 1%, following a 30% decline last
year.
Analysts polled by Thomson Reuters had most recently forecast a
loss of 13 cents on $681 million in revenue.
Gross margin narrowed to 62.7% from 63.4%.
Same-store sales rose 3% at its namesake stores, dropped 2% at
the Hollister chain and rose 6% at abercrombie kids.
Direct-to-consumer revenue, which includes Internet and catalog
sales, jumped 42%.
Shares closed Monday at $40.78 and were inactive premarket. The
stock has gained 56% in the past year.
-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240,
matthew.jarzemsky@dowjones.com