Quarterly Profit At Abercrombie & Fitch Co. (ANF) Exceeds Market Forecasts
February 16, 2010 3:24 PM
Abercrombie & Fitch Co. (NYSE: AFN), the teen apparel retailer posted net profit of $47.5 million or 53 cents per share for the fourth quarter, down from $68.4 million or 79 cents per share a year earlier but higher than the market expectations.
Revenues of $936 million, however, were lower than analysts’ forecasts of $953.7 million. The lower-than-expected revenue was due to lower domestic sales despite a surge of 68% in its international sales. Abercrombie & Fitch Co.’s gross margins also dropped due to some unplanned markdowns on spring items. Same-store sales at its Hollister stores recorded the weakest sales which dropped by 19 percent.
Investors are skeptical of the company’s declining domestic business though the company is trying to add more fashionable merchandise, and also reduce prices without eroding the brand. Abercrombie’s shares gained 55 cents to $34.4 in premarket trading.
