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NEW ALBANY, Ohio, May 11 /PRNewswire-FirstCall/ -- Abercrombie & Fitch (NYSE: ANF) today reported that earnings per share on a fully diluted basis for the first quarter ended May 1, 2004 rose 19% to $0.31 versus $0.26 for the comparable period last year.
Net sales for the thirteen weeks ended May 1, 2004 increased 19% to $411.9 million from $346.7 million for the thirteen weeks ended May 3, 2003. Comparable store sales were flat for the quarter.
Net income for the quarter increased 16% to $29.7 million compared to net income of $25.6 million for the first quarter of fiscal 2003.
Mike Jeffries, Chairman and Chief Executive Officer, said, "I am very pleased with our results for the quarter. Our sales trend has improved and we continued to keep our focus on the bottom line. Although it is difficult to predict the retail environment, I feel confident about the position of our business and our merchandise strategies. Assuming a continuation of the first quarter comp store sales trend, we are comfortable with EPS estimates in the range of $0.38 to $0.40 per diluted share for the second quarter."
Abercrombie & Fitch operated a total of 706 stores at the end of the first quarter, including 170 abercrombie stores and 177 Hollister Co. stores. The Company operates e-commerce websites at www.abercrombie.com , www.abercrombiekids.com , and www.hollisterco.com .
Today at 4:30 pm Eastern Time the Company will conduct a conference call. Management will discuss the Company's performance, its plans for the future and will accept questions from participants. To listen to the conference call, dial (800) 811-0667 or internationally at (913) 981-4901. To listen via the internet, go to www.abercrombie.com , select the Investor Relations page and click on Calendar of Events. Replays of the call will be available shortly after its completion. The audio replay can be accessed for two weeks following the reporting date by calling (888) 203-1112 or internationally at (719) 457- 0820 followed by the conference ID number 302163; or for 12 months by visiting the Company's website at www.abercrombie.com .
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 Release, the Company's Form 10-K 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 "RISK FACTORS" in "ITEM 1. BUSINESS" of A&F's Annual Report on Form 10-K for the fiscal year ended January 31, 2004, in some cases have affected and in the future could affect the Company's financial performance and could cause actual results for the 2004 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this 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; and ability to hire, train and retain associates. 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 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.
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended May 1, 2004 and Thirteen Weeks Ended May 3, 2003
(in thousands except per share data)
ACTUAL ACTUAL
2004 % of Sales 2003 % of Sales
Net Sales $411,930 100.0% $346,722 100.0%
Gross Income 165,590 40.2% 128,188 37.0%
Gen'l, Admin. & Store Oper. Exp. 118,269 28.7% 87,898 25.4%
Operating Income 47,321 11.5% 40,290 11.6%
Interest Income, Net (985) -0.2% (991) -0.3%
Income Before Income Taxes 48,306 11.7% 41,281 11.9%
Income Tax Expense 18,630 4.5% 15,730 4.5%
Effective Rate 38.6% 38.1%
Net Income $29,676 7.2% $25,551 7.4%
Net Income Per Share:
Basic $0.31 $0.26
Diluted $0.31 $0.26
Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
ASSETS May 1, 2004 January 31, 2004
Current Assets
Cash and Equivalents $527,355 $511,073
Marketable Securities 10,000 10,000
Receivables 13,286 7,197
Inventories 132,268 170,703
Store Supplies 30,370 29,993
Other 24,612 23,689
Total Current Assets 737,891 752,655
Property and Equipment, Net 450,154 445,956
Other Assets 496 552
Total Assets $1,188,541 $1,199,163
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $67,764 $91,364
Accrued Expenses 157,165 138,232
Income Taxes Payable 25,581 50,406
Total Current Liabilities 250,510 280,002
Long-Term Liabilities
Debt - -
Deferred Income Taxes 22,717 19,516
Other Long-Term Liabilities 27,034 28,388
Total Long-Term Liabilities 49,751 47,904
Total Shareholders' Equity 888,280 871,257
TOTAL LIABILITIES AND $1,188,541 $1,199,163
SHAREHOLDERS' EQUITY
SOURCE Abercrombie & Fitch
CONTACT: Thomas D. Lennox, Director, Investor Relations and Corporate
Communications of Abercrombie & Fitch, +1-614-283-6751