Abercrombie & Fitch Reports Second Quarter EPS Growth of 26%
August 10 2004 - 5:14PM
PR Newswire (US)
Abercrombie & Fitch Reports Second Quarter EPS Growth of 26%
NEW ALBANY, Ohio, Aug. 10 /PRNewswire-FirstCall/ -- Abercrombie
& Fitch (NYSE:ANF) today reported that earnings per share on a
fully diluted basis for the second quarter ended July 31, 2004 rose
26% to $0.44 versus $0.35 for the comparable period last year. Net
sales for the thirteen weeks ended July 31, 2004 increased 13% to
$401.3 million from $355.7 million for the thirteen weeks ended
August 2, 2003. Comparable store sales decreased 5% in the quarter.
Net income for the quarter increased 23% to $42.9 million compared
to net income of $34.8 million for the second quarter of fiscal
2003. Mike Jeffries, Chairman and Chief Executive Officer, said,
"We are pleased with our second quarter results. Despite a
difficult sales trend, our results reflect strong margin
improvement and solid EPS growth of 26%." The Company said that
assuming a continuation of the second quarter sales trend, coupled
with the continued investment in the business, earnings will be
similar to last year's third quarter EPS. Abercrombie & Fitch
operated a total of 727 stores at the end of the second quarter,
including 171 abercrombie stores and 197 Hollister Co. stores. The
Company operates e-commerce websites at http://www.abercrombie.com/
, http://www.abercrombiekids.com/ , and http://www.hollisterco.com/
. Today at 4:30 pm Eastern Time the Company will conduct a
conference call. Management will discuss the Company's performance,
its plans for the future and will accept questions from
participants. To listen to the conference call, dial (800) 811-0667
or internationally at (913) 981-4901. To listen via the internet,
go to http://www.abercrombie.com/ , select the Investor Relations
page and click on Calendar of Events. Replays of the call will be
available shortly after its completion. The audio replay can be
accessed for two weeks following the reporting date by calling
(888) 203-1112 or internationally at (719) 457-0820 followed by the
conference ID number 369567; or for 12 months by visiting the
Company's website at http://www.abercrombie.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, A&F's Form 10-K 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 "RISK FACTORS" in "ITEM 1. BUSINESS" of A&F's
Annual Report on Form 10-K for the fiscal year ended January 31,
2004, in some cases have affected and in the future could affect
the Company's financial performance and could cause actual results
for the 2004 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:
changes in consumer spending patterns and consumer preferences; the
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;
the impact of competition and pricing; changes in weather patterns;
postal rate increases and changes; paper and printing costs; market
price of key raw materials; ability to source product from its
global supplier base; political stability; currency and exchange
risks and changes in existing or potential duties, tariffs or
quotas; availability of suitable store locations at appropriate
terms; ability to develop new merchandise; and ability to hire,
train and retain associates. Future economic and industry trends
that could potentially impact revenue and profitability are
difficult to predict. Therefore, there can be no assurance that the
forward-looking statements included in this Press Release will
prove to be accurate. In light of the significant uncertainties in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
Company, or any other person, that the objectives of the Company
will be achieved. The forward-looking statements herein are based
on information presently available to the management of the
Company. Except as may be required by applicable law, the Company
assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future changes
make it clear that any projected results expressed or implied
therein will not be realized. Abercrombie & Fitch Co. Condensed
Consolidated Statements of Income (Unaudited) Thirteen Weeks Ended
July 31, 2004 and Thirteen Weeks Ended August 2, 2003 (in thousands
except per share data) ACTUAL ACTUAL % of % of 2004 Sales 2003
Sales Net Sales $401,346 100.0% $355,719 100.0% Gross Income
181,588 45.2% 144,333 40.6% Gen'l, Admin. & Store Oper. Exp.
112,881 28.1% 88,716 24.9% Operating Income 68,707 17.1% 55,617
15.6% Interest Income, Net (1,358) -0.3% (861) -0.2% Income Before
Income Taxes 70,065 17.5% 56,478 15.9% Income Tax Expense 27,210
6.8% 21,660 6.1% Effective Rate 38.8% 38.4% Net Income $42,855
10.7% $34,818 9.8% Net Income Per Share: Basic $0.45 $0.36 Diluted
$0.44 $0.35 Abercrombie & Fitch Co. Condensed Consolidated
Statements of Income (Unaudited) Twenty-six Weeks Ended July 31,
2004 and Twenty-six Weeks Ended August 2, 2003 (in thousands except
per share data) ACTUAL ACTUAL % of % of 2004 Sales 2003 Sales Net
Sales $813,276 100.0% $702,442 100.0% Gross Income 347,178 42.7%
272,521 38.8% Gen'l, Admin. & Store Oper. Exp. 231,150 28.4%
176,614 25.1% Operating Income 116,028 14.3% 95,907 13.7% Interest
Income, Net (2,343) -0.3% (1,852) -0.3% Income Before Income Taxes
118,371 14.6% 97,759 13.9% Income Tax Expense 45,840 5.6% 37,390
5.3% Effective Rate 38.7% 38.2% Net Income $72,531 8.9% $60,369
8.6% Net Income Per Share: Basic $0.76 $0.62 Diluted $0.75 $0.60
Abercrombie & Fitch Co. Condensed Consolidated Balance Sheets
(in thousands) (unaudited) ASSETS July 31, 2004 January 31, 2004
Current Assets Cash and Equivalents $572,148 $511,073 Marketable
Securities 10,000 10,000 Receivables 16,083 7,197 Inventories
199,055 170,703 Store Supplies 32,964 29,993 Other 24,953 23,689
Total Current Assets 855,203 752,655 Property and Equipment, Net
460,254 445,956 Other Assets 444 552 Total Assets $1,315,901
$1,199,163 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
Accounts Payable $137,429 $91,364 Accrued Expenses 154,133 138,232
Income Taxes Payable 35,255 50,406 Total Current Liabilities
326,817 280,002 Long-Term Liabilities Debt - - Deferred Income
Taxes 25,464 19,516 Other Long-Term Liabilities 27,526 28,388 Total
Long-Term Liabilities 52,990 47,904 Total Shareholders' Equity
936,094 871,257 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$1,315,901 $1,199,163 DATASOURCE: Abercrombie & Fitch CONTACT:
Thomas D. Lennox, Director, Investor Relations and Corporate
Communications, of Abercrombie & Fitch, +1-614-283-6751 Web
site: http://www.abercrombie.com/ http://www.abercrombiekids.com/
http://www.hollisterco.com/
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