Abercrombie Sales Rise - Analyst Blog
May 09 2011 - 11:40AM
Zacks
Abercrombie & Fitch Co. (ANF), a specialty
retailer of casual apparel, reported preliminary solid sales
results for the first quarter of fiscal 2011. The company
recorded a comparable store sales growth of 10% in the quarter. The
result was aided by a late Easter holiday in the month of
April.
In the quarter under review, total company direct-to-consumer
net merchandise sales climbed 32% to $105.8 million and total
company international net sales, including direct-to-consumer net
sales, jumped 64% to $195.7 million. U.S. sales, including
direct-to-consumer sales, climbed 13% to $641.0 million
Abercrombie’s brand names, Abercrombie & Fitch and
Hollister, delivered same-store sales growth of a respective 8.0%
and 11.0%, while its children’s brand, Abercrombie Kids, witnessed
an 11% increase.
Keeping up with the increasing sales graph, total sales for the
quarter shot up 22.0% to $836.7 million from $687.8 million in the
same quarter last year.
The Zacks Consensus Estimate for the first quarter of fiscal
2011 is currently pegged at 4 cents a share, which increased by 1
cent over the past 30 days.
Abercrombie operated a total of 1,071 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 9 Abercrombie & Fitch
stores, 4 Abercrombie Kids stores, 40 Hollister Co. and 1 Gilly
Hicks store internationally.
Abercrombie operates in a highly fragmented market and competes
with national as well as regional players. Furthermore, apart from
competing with larger retailers such as Gap Inc.
(GPS), Abercrombie is facing increasing competition from
value-priced specialty retailers such as Aeropostale
Inc. (ARO).
Abercrombie’s shares maintain a Zacks #3 Rank, which translates
into a short-term Hold rating. Our long-term recommendation on the
stock remains Neutral.
ABERCROMBIE (ANF): Free Stock Analysis Report
AEROPOSTALE INC (ARO): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
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