Abercrombie & Fitch Reports January Sales Results
February 03 2011 - 10:29AM
Marketwired
Abercrombie & Fitch (NYSE: ANF) today reported net sales of
$234.1 million for the four-week period ended January 29, 2011, a
6% increase from net sales of $221.5 million for the four-week
period ended January 30, 2010. January comparable store sales
decreased 4%. For the fiscal month, total Company
direct-to-consumer net merchandise sales increased 23% to $33.9
million. For the fiscal month, total Company international net
sales, including direct-to-consumer net sales, increased 42% to
$50.3 million.
For the fiscal quarter ended January 29, 2011, the Company
reported net sales of $1.149 billion, a 23% increase from net sales
of $936.0 million last year. Comparable store sales increased 13%
for the quarter. For the quarter, total Company direct-to-consumer
net merchandise sales increased 43% to $133.4 million. For the
quarter, total Company international net sales, including
direct-to-consumer net sales, increased 61% to $230.3 million.
For the fiscal year ended January 29, 2011, the Company reported
net sales of $3.469 billion, an 18% increase from net sales of
$2.929 billion last year. Comparable store sales increased 7% for
the fiscal year. For the fiscal year, total Company
direct-to-consumer net merchandise sales increased 41% to $352.5
million. For the fiscal year, total Company international net
sales, including direct-to-consumer net sales, increased 79% to
$646.6 million.
Reported sales for prior year fiscal January included
promotional gift cards issued during prior months but redeemed or
expired during the month with a face value of $22 million. The
corresponding dollar amount for fiscal January 2010 was not
significant.
Additional information regarding sales for fiscal January can be
found in a pre-recorded message accessible for two weeks from
today, by dialing (800) 395-0662 or, internationally, by dialing
(402) 220-1262.
January 2011 Highlights
- Total Company net sales, including direct-to-consumer net
sales, increased 6%
- Total Company domestic net sales, including direct-to-consumer
net sales, decreased 1%
- Total Company international net sales, including
direct-to-consumer net sales, increased 42%
- Total Company comparable store sales decreased 4%
- Total Company direct-to-consumer net merchandise sales
increased 23%
- Abercrombie & Fitch comparable store sales increased
3%
- abercrombie kids comparable store sales decreased 11%
- Hollister Co. comparable store sales decreased 8%
Other Developments
As a result of its fiscal year-end review of long-lived
store-related assets, the Company expects to record an impairment
charge for the quarter. The charge will include a substantial
portion of the approximately $58 million net book value associated
with Gilly Hicks stores, as well as certain other store-related
assets. The Gilly Hicks charge relates to the stores constructed
using the original large format store of around 10,000 gross square
feet. The Company expects that future stores will be constructed
using the new smaller format of approximately 5,000 gross square
feet. The impairment charge does not affect the Company's operating
plans for Gilly Hicks.
In addition, as previously indicated, for the fiscal quarter
ended January 29, 2011 the Company expects to record exit charges
associated with the closure of 56 domestic stores during the
quarter. These closures are in addition to the 8 permanent closures
that occurred in prior quarters during the fiscal year. Fourth
quarter net pre-tax charges associated with these closures are
expected to be approximately $4 million, primarily related to lease
obligations.
The Company will release its fourth quarter results on
Wednesday, February 16, 2011, prior to the opening of the market
and hold a conference call at 8:30am Eastern Time. To listen to the
conference call, dial (888) 812-8589 and ask for the Abercrombie
& Fitch Quarterly Call or go to www.abercrombie.com. The
international call-in number is (913) 312-0406. This call will be
recorded and made available by dialing the replay number (888)
203-1112 or the international number (719) 457-0820 followed by the
conference ID number 7186724 or through wwww.abercrombie.com.
At the end of fiscal 2010, the Company operated a total of 1,069
stores. The Company operated 316 Abercrombie & Fitch stores,
181 abercrombie kids stores, 502 Hollister Co. stores and 18 Gilly
Hicks stores in the United States. The Company also operated nine
Abercrombie & Fitch stores, four abercrombie kids stores, 38
Hollister Co. stores and one Gilly Hicks store internationally. The
Company also operates e-commerce websites at www.abercrombie.com,
www.abercrombiekids.com, www.hollisterco.com and
www.gillyhicks.com.
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 January 30, 2010, in some cases have affected and
in the future could affect the Company's financial performance and
could cause actual results for the 2010 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: general economic and financial
conditions could have a material adverse effect on the Company's
business, results of operations and liquidity; loss of the services
of skilled senior executive officers could have a material adverse
effect on the Company's business; ability to hire, train and retain
qualified associates could have a material adverse effect on the
Company's business; equity-based compensation awarded under the
employment agreement with the Company's Chief Executive Officer
could adversely impact the Company's cash flows, financial position
or results of operations and could have a dilutive effect on the
Company's outstanding Common Stock; failure to anticipate, identify
and respond to changing consumer preferences and fashion trends in
a timely manner could cause the Company's profitability to decline;
unseasonable weather conditions affecting consumer preferences
could have a material adverse effect on the Company's business;
disruptive weather conditions affecting the consumers' ability to
shop could have a material adverse effect on the Company's
business; the Company's market share may be adversely impacted at
any time by a significant number of competitors; the Company's
international expansion plan is dependent on many factors, any of
which could delay or prevent successful penetration into new
markets and strain its resources; the Company's growth strategy
relies on the addition of new stores, which may strain the
Company's resources and adversely impact current store performance;
the Company may incur costs related to store closures; availability
and market prices of key raw materials and labor costs could have a
material adverse effect on the Company's business and results of
operations; the interruption of the flow of merchandise from key
vendors and international manufacturers could disrupt the Company's
supply chain; the Company does not own or operate any manufacturing
facilities and therefore depends upon independent third parties for
the manufacture of all its merchandise; the Company's reliance on
two distribution centers domestically located in the same vicinity,
and one distribution center internationally, makes it susceptible
to disruptions or adverse conditions affecting its distribution
centers; the Company's reliance on third parties to deliver
merchandise from its distribution centers to its stores and
direct-to-consumer customers could result in disruptions to its
business; the Company's development of new brand concepts could
have a material adverse effect on the Company's financial condition
or results of operations; fluctuations in foreign currency exchange
rates could adversely impact financial results; the Company's net
sales and inventory levels fluctuate on a seasonal basis, causing
its results of operations to be particularly susceptible to changes
to back-to-school and holiday shopping patterns; the Company's
ability to attract customers to its stores depends heavily on the
success of the shopping centers in which they are located;
comparable store sales will continue to fluctuate on a regular
basis; the Company's net sales are affected by direct-to-consumer
sales; the Company may be exposed to risks and costs associated
with credit card fraud and identity theft; the Company's litigation
exposure could exceed expectations, having a material adverse
effect on the Company's financial condition or results of
operations; the Company's failure to adequately protect its
trademarks could have a negative impact on its brand image and
limit its ability to penetrate new markets; the Company's unsecured
credit agreement includes financial and other covenants that impose
restrictions on its financial and business operations; changes in
taxation requirements could adversely impact financial results; the
Company's inability to obtain commercial insurance at acceptable
prices or failure to adequately reserve for self-insured exposures
might increase expense and adversely impact financial results;
modifications and/or upgrades to information technology systems may
disrupt operations; the Company could suffer if the Company's
computer systems are disrupted or cease to operate effectively;
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
could have a material adverse effect on the Company's business;
potential disruption of the Company's business due to the
occurrence of, or fear of, a health pandemic could have a material
adverse effect on the Company's business; changes in the regulatory
or compliance landscape could adversely affect the Company's
business or results of operations; and the Company's operations may
be effected by greenhouse emissions and climate change.
For further information, call: Eric Cerny Manager, Investor
Relations (614) 283-6385
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