NEW ALBANY, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- Abercrombie & Fitch
(NYSE: ANF) today reported net sales of $539.2 million for the five-week
period ended January 3, 2009, an 18% decrease from net sales of $657.0 million
for the five-week period ended January 5, 2008. December comparable store
sales decreased 24%. Total Company direct-to-consumer net sales decreased 11%
to $45.6 million for the five-week period ended January 3, 2009, compared to
the five-week period ended January 5, 2008.
Year-to-date, the Company reported a net sales decrease of 5% to $3.349
billion from $3.530 billion last year. Comparable store sales decreased 13%
for the year-to-date period. Year-to-date, the Company reported that direct-
to-consumer net sales increased 4% to $245.0 million.
December 2008 Sales Developments
- Total Company net sales decreased 18%
- Total Company direct-to-consumer net sales decreased 11%
- Total Company comparable store sales decreased 24%
- Abercrombie & Fitch comparable store sales decreased 24%
- abercrombie comparable store sales decreased 29%
- Hollister Co. comparable store sales decreased 24%
- RUEHL comparable store sales decreased 26%
Based on the impact of current sales trends on the profitability of a
number of Ruehl and other stores, the Company expects that its fiscal year-end
review of long-lived assets will result in a non-cash impairment charge in the
fourth quarter.
Other Developments
During the fourth quarter the Company will record a charge of
approximately $10.0 million to tax expense as a result of the execution of the
Chairman and Chief Executive Officer's new employment agreement on December
19, 2008, which pursuant to section 162(m) results in the exclusion of
previously recognized tax benefits. Under the previous employment agreement,
the Company recorded deferred tax assets based on the anticipated delivery of
benefits to the CEO in the calendar year following the year of his retirement.
As a result of the new employment agreement, the CEO will receive the benefits
during his new employment term, therefore the expected tax benefits will no
longer be available.
As a result of the charge to tax expense and the expected non-cash
impairment charge, the Company now anticipates that net income per diluted
share for the fourth quarter will be significantly below the $1.00 to $1.05
per diluted share guidance previously issued.
The Company will report January sales results on Thursday, February 5,
2009 and fourth quarter earnings on Friday, February 13, 2009.
The Company operated 353 Abercrombie & Fitch stores, 211 abercrombie
stores, 503 Hollister Co. stores, 28 RUEHL stores and 13 Gilly Hicks stores in
the United States at the end of fiscal December. The Company operates three
Abercrombie & Fitch stores, two abercrombie stores, five Hollister Co. stores
in Canada, and one Abercrombie & Fitch store and two Hollister Co. stores in
London, England. The Company operates e-commerce websites at
www.abercrombie.com, www.abercrombiekids.com, and www.hollisterco.com and
www.RUEHL.com.
To hear the Abercrombie & Fitch pre-recorded December sales message,
please dial (800) 395-0662, or internationally, dial (402) 220-1262.
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 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 "FORWARD-LOOKING STATEMENTS
AND RISK FACTORS" in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form
10-K for the fiscal year ended February 2, 2008, in some cases have affected
and in the future could affect the Company's financial performance and could
cause actual results for the 2008 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; ability to
hire, train and retain associates; and the outcome of pending litigation.
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.
SOURCE Abercrombie & Fitch
CONTACT:
Investor Inquiries:
Eric Cerny,
Manager, Investor Relations,
+1-614-283-6385
Web site: http://www.abercrombie.com
http://www.abercrombiekids.com
(ANF)
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