NEW ALBANY, Ohio – Abercrombie & Fitch Co. reports second quarter net income of $81.3 million (88 cents per share), an impressive 24 percent boost over the same quarter last year’s net income of $65.7 million (72 cents per share). Net sales also increased sharply: up 22 percent, from $658.7 million in the second quarter of last year to $804.5 million. The company’s performance surpassed analyst expectations.
However, sales in comparable stores decreased two percent this quarter over the same time last year, which cooled the jubilation.
CEO Mike Jeffries is happy nonetheless: “I am extremely pleased with the record financial results we posted this quarter. Our success can be attributed largely to the fact that we have created a consistent business that is able to generate strong results. Our company is uniquely positioned, with each brand maintaining only the highest standards and supported by defined and proven processes that are continuously audited. The drive for constant improvement in standard, process and audit will help us to maintain our leadership position over the long term.”
The company lowered its earnings forecast for the rest of the year, based on the sales drop in comparable stores. The high net sales could be accounted for by the large number of new stores opened.
Abercrombie & Fitch Co. has a total of 977 stores across its brands. The suburban Columbus, Ohio-based company operates stores under the names Abercrombie & Fitch, abercrombie, Hollister and Ruehl. There are plans to expand the Abercrombie & Fitch brand in Italy, France, Germany, Spain, Denmark and Sweden, with a Tokyo flagship scheduled for 2009.