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NEW ALBANY, Ohio, Aug 12, 2003 /PRNewswire-FirstCall via COMTEX/ -- Abercrombie & Fitch (NYSE: ANF) today reported that earnings per share on a fully diluted basis for the second quarter ended August 2, 2003 rose 13% to $.35 versus $.31 for the comparable period last year.
Net sales for the thirteen weeks ended August 2, 2003 increased 8% to $355.7 million from $329.2 million for the thirteen weeks ended August 3, 2002. Comparable store sales decreased 8% in the quarter.
Net income for the quarter increased 12% to $34.8 million compared to net income of $31.1 million for the second quarter of fiscal 2002.
Mike Jeffries, Chairman and Chief Executive Officer, said, "I am pleased with our second quarter financial results. Despite a tough sales environment, we were able to report double-digit profit growth. It is very difficult at this point to predict the level of demand for the fall season. However, if the second quarter sales trend continues, we are comfortable that we can report flat to slightly higher EPS for the third quarter."
Abercrombie & Fitch operated a total of 625 stores at the end of the second quarter, including 167 abercrombie stores and 112 Hollister Co. stores. The Company operates e-commerce websites at www.abercrombie.com , www.abercrombiekids.com , www.hollisterco.com and publishes the A&F Quarterly.
Today at 4:30 p.m. 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) 428-6675 or internationally at (706) 634-1917. 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 (800) 642-1687 or internationally at (706) 645-9291 followed by the conference ID number 6755952; 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:
The Company 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 the Company involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: changes in consumer spending patterns, consumer preferences and overall economic conditions, the impact of competition and pricing, changes in weather patterns, political stability, currency and exchange risks and changes in existing or potential duties, tariffs or quotas, postal rate increases and charges, paper and printing costs, availability of suitable store locations at appropriate terms, ability to develop new merchandise and ability to hire and train associates.
Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
ASSETS August 2, 2003 February 1, 2003
Current Assets
Cash and Equivalents $385,187 $391,035
Marketable Securities - 10,000
Receivables 11,520 10,462
Inventories 199,581 144,218
Store Supplies 28,515 25,671
Other 20,612 19,770
Total Current Assets 645,415 601,156
Property and Equipment, Net 426,191 392,941
Other Assets 607 725
Total Assets $1,072,213 $994,822
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $79,746 $50,153
Accrued Expenses 143,811 120,438
Income Taxes Payable 25,798 40,879
Total Current Liabilities 249,355 211,470
Long-Term Liabilities
Debt - -
Deferred Income Taxes 28,872 20,781
Other Long-Term Liabilities 16,351 13,044
Total Long-Term Liabilities 45,223 33,825
Total Shareholders' Equity 777,635 749,527
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,072,213 $994,822
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended August 2, 2003 and Thirteen Weeks Ended
August 3, 2002
(in thousands except per share data)
ACTUAL ACTUAL
% of % of
2003 Sales 2002 Sales
Net Sales $355,719 100.0% $329,154 100.0%
Gross Income 144,333 40.6% 131,874 40.1%
Gen'l, Admin. & Store Oper. Exp. 88,716 24.9% 82,304 25.0%
Operating Income 55,617 15.6% 49,570 15.1%
Interest Income, Net (861) -0.2% (731) -0.2%
Income Before Income Taxes 56,478 15.9% 50,301 15.3%
Income Tax Expense 21,660 6.1% 19,160 5.8%
Effective Rate 38.4% 38.1%
Net Income $34,818 9.8% $31,141 9.5%
Net Income Per Share:
Basic $0.36 $0.32
Diluted $0.35 $0.31
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Twenty-six Weeks Ended August 2, 2003 and Twenty-six Weeks Ended
August 3, 2002
(in thousands except per share data)
ACTUAL ACTUAL
% of % of
2003 Sales 2002 Sales
Net Sales $702,442 100.0% $641,946 100.0%
Gross Income 272,521 38.8% 246,303 38.4%
Gen'l, Admin. & Store Oper. Exp. 176,614 25.1% 159,746 24.9%
Operating Income 95,907 13.7% 86,557 13.5%
Interest Income, Net (1,852) -0.3% (1,603) -0.2%
Income Before Income Taxes 97,759 13.9% 88,160 13.7%
Income Tax Expense 37,390 5.3% 33,730 5.3%
Effective Rate 38.2% 38.3%
Net Income $60,369 8.6% $54,430 8.5%
Net Income Per Share:
Basic $0.62 $0.55
Diluted $0.60 $0.53
SOURCE Abercrombie & Fitch
Thomas D. Lennox, Director, Investor Relations and Corporate Communications of Abercrombie & Fitch, +1-614-283-6751
http://www.abercrombie.com