November 21, 2013

Abercrombie & Fitch reports loss in Q3

Casual apparel retailer Abercrombie & Fitch reported loss for the third quarter, compared to profit last year, amid lower sales as well as charges related to the restructuring of its Gilly Hicks brand.

By admin-demo

Casual apparel retailer Abercrombie & Fitch reported loss for the third quarter, compared to profit last year, amid lower sales as well as charges related to the restructuring of its Gilly Hicks brand.

Net loss for the quarter was $15.64m, compared to profit of $84.04m in the previous year. Excluding charges related to restructuring, asset impairment, and profit improvement initiative, the company reported net income of $40.5m.

Net sales for the third quarter declined 12% to $1.033bn, as against $1.17bn in the corresponding period a year ago.

Including direct-to-consumer, total US sales decreased 18% to $674.9m and total international sales rose 2% to $358.4m.

Total company direct-to-consumer sales, including shipping and handling, increased 10% to $174.6m in the third quarter of fiscal 2013.

Total comparable sales, including direct-to-consumer sales, decreased 14% with 14% drop in comparable US sales and 15% decrease in comparable international sales.

Total direct-to-consumer comparable sales increased 11% for the quarter. Within the quarter, comparable sales were weakest in August and September, the retailer noted.

By brand, including direct-to-consumer, comparable sales decreased 13% for Abercrombie & Fitch, declined 4% for Abercrombie kids, and dropped 16% for Hollister Co.

Abercrombie & Fitch is a specialty retailer based in the US. The company retails a wide array of products, including casual sportswear apparel, knit and woven shirts, fleece, jeans, graphic t-shirts, woven pants, sweaters, shorts and outerwear along with personal care products and other accessories for men, women and kids.

The retail chain offers products under Abercrombie & Fitch, abercrombie kids and Hollister brands. It also offers bras, underwear, sleepwear, personal care products and at-home products for girls under the Gilly Hicks brand.