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Fourth Quarter Net Income Per Diluted Share of
NEW
The Company also reported net income of
-
Fourth Quarter Sales Highlights
Total Company net sales decreased 19% to$998 million ; comparable store sales decreased 25%- Total direct-to-consumer net sales decreased 12% to
$95.1 million Abercrombie & Fitch net sales of$404.4 million ;Abercrombie & Fitch comparable store sales decreased 23%- abercrombie net sales of
$120.1 million ; abercrombie comparable store sales decreased 30% Hollister Co. net sales of$449.6 million ;Hollister Co. comparable store sales decreased 25%- RUEHL net sales of
$17.1 million ; RUEHL comparable store sales decreased 25%
"The fourth quarter proved to be a catastrophe for the retail industry; a nightmare that included unprecedented promotional activity by other retailers in the malls and consumers who continued to show reluctance to spend, especially for premium brands. However, despite the unprecedented volatility, we are satisfied with our results for the quarter. Our comparable store sales decrease was lower than we had projected, our earnings per diluted share, excluding the effect of one-time items, exceeded our guidance and we maintained the aspirational nature of all of our brands. As we look toward 2009, we continue to see a tumultuous environment. We will again rely on our ability to manage the aspects of the business that are under our control and continue to protect and position our brands for more promising times."
Fourth Quarter and Fiscal Year 2008 Financial Results
Net sales for the thirteen weeks ended
The gross profit rate for the quarter was 64.4%, 280 basis points lower than last year. The decrease in gross profit rate was attributable to an increase in markdowns taken to clear through seasonal inventory. For Fiscal 2008, the gross profit rate was 66.7% versus 67.0% last year.
Stores and distribution expense for the quarter, as a percentage of sales,
increased to 42.3% from 31.6%. The Company was able to achieve reductions in
store payroll, but at less than the rate of the sales decline. In addition,
the Company recorded a
Marketing, general and administrative expense for the quarter was
Interest income for the quarter decreased to
The effective tax rate for the fourth quarter was 45.7% compared to 36.9%
for the Fiscal 2007 comparable period. The fourth quarter tax rate reflects a
charge of
2009 Outlook
The Company anticipates a difficult selling environment to persist throughout 2009 and believes there may be significant volatility in sales levels. Due to the current economic conditions, and in particular, their impact on sales trends, the Company is not providing EPS guidance for Fiscal 2009.
Based on current lease commitments, the Company expects total capital
expenditures to be in the range of
The flagship openings to which the Company is committed in 2009 include
The Company also confirmed it is in an on-going process of reviewing operating expenses, and has already implemented a number of cost reduction actions.
Other Developments
The Board of Directors declared a quarterly cash dividend of
The Company operated 352
Today at
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 "MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OEPRATIONS" in "ITEM 2.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995" of A&F's Quarterly Report on Form 10-Q for the quarterly period ended
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended January 31, 2009 and
Thirteen Weeks Ended February 2, 2008
(in thousands, except per share data)
ACTUAL ACTUAL
2008 % of Sales 2007 % of Sales
Net Sales $997,955 100.0% $1,228,969 100.0%
Cost of Goods Sold 355,341 35.6% 403,352 32.8%
Gross Profit 642,614 64.4% 825,617 67.2%
Total Stores and
Distribution Expense 422,459 42.3% 388,421 31.6%
Total Marketing, General
and Administrative Expense 100,978 10.1% 103,147 8.4%
Other Operating Income, Net (5,468) -0.5% (3,019) -0.2%
Operating Income 124,645 12.5% 337,068 27.4%
Interest Income, Net (1,419) -0.1% (6,356) -0.5%
Income Before Income Taxes 126,064 12.6% 343,424 27.9%
Income Tax Expense 57,657 5.8% 126,668 10.3%
Effective Rate 45.7% 36.9%
Net Income $68,407 6.9% $216,756 17.6%
Net Income Per Share:
Basic $0.79 $2.52
Diluted $0.78 $2.40
Weighted-Average Shares
Outstanding:
Basic 87,052 86,122
Diluted 88,258 90,235
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Fifty-Two Weeks Ended January 31, 2009 and
Fifty-Two Weeks Ended February 2, 2008
(in thousands, except per share data)
ACTUAL ACTUAL
2008 % of Sales 2007 % of Sales
Net Sales $3,540,276 100.0% $3,749,847 100.0%
Cost of Goods Sold 1,178,584 33.3% 1,238,480 33.0%
Gross Profit 2,361,692 66.7% 2,511,367 67.0%
Total Stores and
Distribution Expense 1,511,511 42.7% 1,386,846 37.0%
Total Marketing, General
and Administrative Expense 419,659 11.9% 395,758 10.6%
Other Operating Income, Net (8,864) -0.3% (11,734) -0.3%
Operating Income 439,386 12.4% 740,497 19.7%
Interest Income, Net (11,382) -0.3% (18,828) -0.5%
Income Before Income Taxes 450,768 12.7% 759,325 20.2%
Income Tax Expense 178,513 5.0% 283,628 7.6%
Effective Rate 39.6% 37.4%
Net Income $272,255 7.7% $475,697 12.7%
Net Income Per Share:
Basic $3.14 $5.45
Diluted $3.05 $5.20
Weighted-Average Shares
Outstanding:
Basic 86,816 87,248
Diluted 89,291 91,523
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
ASSETS January 31, 2009 February 2, 2008
Current Assets
Cash and Equivalents $522,122 $118,044
Marketable Securities - 530,486
Receivables 53,110 53,801
Inventories 372,422 333,153
Deferred Income Taxes 43,408 36,128
Other Current Assets 93,763 68,643
Total Current Assets 1,084,825 1,140,255
Property and Equipment, Net 1,398,655 1,318,291
Marketable Securities 229,081 -
Other Assets 135,620 109,052
TOTAL ASSETS $2,848,181 $2,567,598
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Outstanding
Checks $149,753 $151,798
Accrued Expenses 241,231 280,910
Deferred Lease Credits 42,358 37,925
Income Taxes Payable 16,455 72,480
Total Current Liabilities 449,797 543,113
Long-Term Liabilities
Deferred Income Taxes 34,085 22,491
Deferred Lease Credits 211,978 213,739
Debt 100,000 -
Other Liabilities 206,743 169,942
Total Long-Term Liabilities 552,806 406,172
Total Shareholders' Equity 1,845,578 1,618,313
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,848,181 $2,567,598
SOURCE:
CONTACT:
Investor Inquiries:
Web site: http://www.abercrombie.com
http://www.abercrombiekids.com