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Last Update: 16-Nov-11 10:49 ET
Abercrombie & Fitch Third Quarter Earnings Fall Short Of Expectations
Abercrombie & Fitch (ANF $47.53 -8.17) reported third quarter earnings of $0.57 per share, $0.15 worse than the Capital IQ Consensus Estimate of $0.72.
Revenues rose 21.5% year/year to $1.08 billion versus the $1.07 billion consensus.
U.S. sales, including direct-to-consumer sales, increased 14% to $820.2 million. International sales, including direct-to-consumer sales, increased 56% to $255.7 million. Total Company direct-to-consumer sales, including shipping and handling, increased 41% to $132.4 million. The gross profit rate for the third quarter was 60.1%, 360 basis points lower than last year's third quarter gross profit rate. The decrease in the gross profit rate was driven primarily by an increase in average unit cost combined with an approximately flat AUR.
"While our results for the third quarter were impacted by costing challenges combined with greater uncertainty in the macroeconomic environment, we remain very confident in our strategy, the underlying strength of our brands and our ability to create long-term shareholder value."
The company continues to anticipate opening five Abercrombie & Fitch flagship locations during Fiscal 2011, including flagships opened in Paris in May and Madrid on Nov 3, 2011, and openings in Dusseldorf, Brussels and Singapore in December. The co expects to open 40 international mall-based Hollister stores, of which 25 had opened as of October 29, 2011.
Revenues rose 21.5% year/year to $1.08 billion versus the $1.07 billion consensus.
U.S. sales, including direct-to-consumer sales, increased 14% to $820.2 million. International sales, including direct-to-consumer sales, increased 56% to $255.7 million. Total Company direct-to-consumer sales, including shipping and handling, increased 41% to $132.4 million. The gross profit rate for the third quarter was 60.1%, 360 basis points lower than last year's third quarter gross profit rate. The decrease in the gross profit rate was driven primarily by an increase in average unit cost combined with an approximately flat AUR.
"While our results for the third quarter were impacted by costing challenges combined with greater uncertainty in the macroeconomic environment, we remain very confident in our strategy, the underlying strength of our brands and our ability to create long-term shareholder value."
The company continues to anticipate opening five Abercrombie & Fitch flagship locations during Fiscal 2011, including flagships opened in Paris in May and Madrid on Nov 3, 2011, and openings in Dusseldorf, Brussels and Singapore in December. The co expects to open 40 international mall-based Hollister stores, of which 25 had opened as of October 29, 2011.
