Abercrombie & Fitch Co.'s (ANF) fiscal third-quarter profit
was up 29%, beating analysts' expectations despite narrower
margins.
The high-priced teen-apparel retailer has shown signs of
recovery from woeful year-earlier results--including international
sales that have continued their recent strength with an 87%
increase in the latest period. Overall, retailers finished the
back-to-school season strong, raising hopes for the holidays,
though much of the sales came at the cost of heavy promotions.
For the quarter ended Oct. 30, Abercrombie & Fitch posted a
profit of $50 million, or 56 cents a share, up from $38.8 million,
or 44 cents a share, a year earlier, which included a net 9-cent
tax gain. Analysts polled by Thomson Reuters most recently
predicted 51 cents.
Gross margin narrowed to 63.7% from 64.1%.
The company said earlier this month net sales climbed 18% to
$885.8 million, following last year's 15% drop. Same-store sales
rose 7% while direct-to-consumer sales rose 32%.
Shares closed Monday at $45.33 and were inactive premarket. The
stock has gained 30% this year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com