Abercrombie & Fitch Co. (ANF) swung to a
bigger-than-expected fiscal first-quarter profit as margins
improved on lower average unit costs and international product
offerings.
Shares were trading up 3.6% at $75.55 premarket. The stock has
risen 91% over the past year as of Tuesday's $73.17 close.
Sales at the teen-apparel retailer began to recover in 2010,
partly driven by international sales, and the company has been
gaining market share since it lowered prices.
For the quarter ended April 30, Abercrombie reported a profit of
$25.1 million, or 28 cents a share, compared with a loss of $11.8
million, or 13 cents, a year earlier. Earnings from continuing
operations were 27 cents in the latest quarter. Analysts polled by
Thomson Reuters had most recently forecast earnings of 12 cents a
share.
Gross margin climbed to 65% from 62.7%, reflecting a lower
average unit cost, favorable international mix, including foreign
currency impact, and other gross margin items, such as a freight
benefit.
Earlier this month, the company said total sales jumped 22% to
$836.7 million, while same-store sales rose 10%.
U.S. sales rose 13% to $641 million, international sales rose
64% to $195.7 million, and direct sales rose 32% to $105.8 million.
By brand, same-store sales rose 8% for A&F, 11% for Abercrombie
Kids and 11% for Hollister.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com