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NEW ALBANY, Ohio, Aug 10, 2004 /PRNewswire-FirstCall via COMTEX/ -- Abercrombie & Fitch (NYSE: ANF) today reported that earnings per share on a fully diluted basis for the second quarter ended July 31, 2004 rose 26% to $0.44 versus $0.35 for the comparable period last year.
Net sales for the thirteen weeks ended July 31, 2004 increased 13% to $401.3 million from $355.7 million for the thirteen weeks ended August 2, 2003. Comparable store sales decreased 5% in the quarter.
Net income for the quarter increased 23% to $42.9 million compared to net income of $34.8 million for the second quarter of fiscal 2003.
Mike Jeffries, Chairman and Chief Executive Officer, said, "We are pleased with our second quarter results. Despite a difficult sales trend, our results reflect strong margin improvement and solid EPS growth of 26%."
The Company said that assuming a continuation of the second quarter sales trend, coupled with the continued investment in the business, earnings will be similar to last year's third quarter EPS.
Abercrombie & Fitch operated a total of 727 stores at the end of the second quarter, including 171 abercrombie stores and 197 Hollister Co. stores. The Company operates e-commerce websites at http://www.abercrombie.com , http://www.abercrombiekids.com , and http://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 http://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 369567; or for 12 months by visiting the Company's website at http://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 Press Release, A&F'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 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; 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 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.
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended July 31, 2004 and Thirteen Weeks Ended August 2, 2003
(in thousands except per share data)
ACTUAL ACTUAL
% of % of
2004 Sales 2003 Sales
Net Sales $401,346 100.0% $355,719 100.0%
Gross Income 181,588 45.2% 144,333 40.6%
Gen'l, Admin. & Store Oper. Exp. 112,881 28.1% 88,716 24.9%
Operating Income 68,707 17.1% 55,617 15.6%
Interest Income, Net (1,358) -0.3% (861) -0.2%
Income Before Income Taxes 70,065 17.5% 56,478 15.9%
Income Tax Expense 27,210 6.8% 21,660 6.1%
Effective Rate 38.8% 38.4%
Net Income $42,855 10.7% $34,818 9.8%
Net Income Per Share:
Basic $0.45 $0.36
Diluted $0.44 $0.35
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited) Twenty-six Weeks Ended July 31, 2004 and Twenty-six Weeks Ended August 2, 2003
(in thousands except per share data)
ACTUAL ACTUAL
% of % of
2004 Sales 2003 Sales
Net Sales $813,276 100.0% $702,442 100.0%
Gross Income 347,178 42.7% 272,521 38.8%
Gen'l, Admin. & Store Oper. Exp. 231,150 28.4% 176,614 25.1%
Operating Income 116,028 14.3% 95,907 13.7%
Interest Income, Net (2,343) -0.3% (1,852) -0.3%
Income Before Income Taxes 118,371 14.6% 97,759 13.9%
Income Tax Expense 45,840 5.6% 37,390 5.3%
Effective Rate 38.7% 38.2%
Net Income $72,531 8.9% $60,369 8.6%
Net Income Per Share:
Basic $0.76 $0.62
Diluted $0.75 $0.60
Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
ASSETS July 31, 2004 January 31, 2004
Current Assets
Cash and Equivalents $572,148 $511,073
Marketable Securities 10,000 10,000
Receivables 16,083 7,197
Inventories 199,055 170,703
Store Supplies 32,964 29,993
Other 24,953 23,689
Total Current Assets 855,203 752,655
Property and Equipment, Net 460,254 445,956
Other Assets 444 552
Total Assets $1,315,901 $1,199,163
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $137,429 $91,364
Accrued Expenses 154,133 138,232
Income Taxes Payable 35,255 50,406
Total Current Liabilities 326,817 280,002
Long-Term Liabilities
Debt - -
Deferred Income Taxes 25,464 19,516
Other Long-Term Liabilities 27,526 28,388
Total Long-Term Liabilities 52,990 47,904
Total Shareholders' Equity 936,094 871,257
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,315,901 $1,199,163
SOURCE Abercrombie & Fitch
Thomas D. Lennox, Director, Investor Relations and Corporate Communications, of Abercrombie & Fitch, 614-283-6751
http://www.abercrombie.com