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REYNOLDSBURG, Ohio, Nov. 7 /PRNewswire/ -- Abercrombie & Fitch (NYSE: ANF) today reported that diluted earnings per share for the third fiscal quarter ended October 28, 2000 rose 19% to $.43 from an adjusted $.36 for the comparable period last year.
Net sales for the quarter increased 28% to $366.9 million from $287.0 million last year. Comparable store sales decreased 3% in the quarter versus an 11% increase last year.
Operating income for the quarter increased 12% to $71.2 million from an adjusted $63.4 million last year. Net income increased 12% to $43.6 million compared to an adjusted net income of $39.1 million last year.
Year-to-date net sales increased 19% to $805.1 million from $674.2 million last year. Comparable store sales for the year-to-date period decreased 5%. Operating income, year-to-date, increased 11% to $129.6 million compared to an adjusted $116.7 million for the same period of 1999. Net income, year-to- date, increased 11% to $80.9 million from an adjusted $72.9 million last year.
Mike Jeffries, Chairman and Chief Executive Officer, said, "I am pleased we were able to continue to deliver strong EPS performance in a difficult sales environment. We are very happy with the performance of the women's business and are well positioned in inventory in women's for the fourth quarter. We continue to be cautious about the Holiday season, but are comfortable with our previously announced earnings guidance of $.84 per diluted share for the fourth quarter.
"In July we began a four store test of our new concept, Hollister Co., a West Coast inspired business targeted at high school guys and girls. The test has been extremely successful and as a result we will begin rolling out the Hollister business in 2001. We are targeting 20 stores for Fall 2001 and believe the business ultimately has 600-800 store potential."
A lifestyle brand, Abercrombie & Fitch operated a total of 325 stores at the end of October, including 71 abercrombie stores and four Hollister Co. stores. The Company also operates a kids' e-commerce website at www.abercrombiekids.com , an adult e-commerce website at www.abercrombie.com and publishes the A&F Quarterly.
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: change 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.
Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended October 28, 2000 and
Thirteen Weeks Ended October 30, 1999
(in thousands except per share data)
ACTUAL ACTUAL
2000 % of Sales 1999 % of Sales
Net Sales $366,885 100.0% $286,983 100.0%
Gross Income 148,197 40.4% 121,886 42.5%
Gen'l, Admin. &
Oper. Exp. 77,014 21.0% 58,476 20.4%
Operating Income 71,183 19.4% 63,410 22.1%
Interest Expense/
(Income), Net (1,469) -0.4% (1,684) -0.6%
Income Before Taxes 72,652 19.8% 65,094 22.7%
Income Tax Expense 29,060 7.9% 26,035 9.1%
Effective Rate 40.0% -- 40.0% --
Net Income $43,592 11.9% $39,059 13.6%
Net Income Per Share:
Basic $0.44 -- $0.38 --
Diluted $0.43 -- $0.36 --
Abercrombie & Fitch Co.
Consolidated Statements of Income
(Unaudited)
Thirty Nine Weeks Ended October 28, 2000 and
Thirty Nine Weeks Ended October 30, 1999
(in thousands except per share data)
ACTUAL ACTUAL
2000 % of Sales 1999 % of Sales
Net Sales $805,053 100.0% $674,172 100.0%
Gross Income 317,712 39.5% 274,511 40.7%
Gen'l, Admin. &
Oper. Exp. 188,154 23.4% 157,787 23.4%
Operating Income 129,558 16.1% 116,724 17.3%
Interest Expense/
(Income), Net (5,300) -0.7% (4,742) -0.7%
Income Before Taxes 134,858 16.8% 121,466 18.0%
Income Tax Expense 53,940 6.7% 48,586 7.2%
Effective Rate 40.0% -- 40.0% --
Net Income $80,918 10.1% $72,880 10.8%
Net Income Per Share:
Basic $0.81 -- $0.71 --
Diluted $0.79 -- $0.67 --
Abercrombie & Fitch Co.
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
ASSETS October 28, January 29,
2000 2000
Current Assets
Cash & Equivalents $94,162 $147,908
Marketable Securities -- 45,601
Accounts Receivable 14,596 11,447
Inventories 122,374 75,262
Store Supplies 13,845 11,674
Other 2,960 8,325
Total Current Assets 247,937 300,217
Property and Equipment, Net 268,607 146,403
Deferred Income Taxes 11,060 11,060
Other Assets 420 486
Total Assets $528,024 $458,166
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $54,766 $18,714
Accrued Expenses 112,943 85,373
Income Taxes Payable 8,427 33,779
Total Current Liabilities 176,136 137,866
Long-Term Debt -- --
Other Long-Term Liabilities 8,290 9,206
Total Shareholders' Equity 343,598 311,094
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $528,024 $458,166
SOURCE Abercrombie & Fitch
CONTACT: Tom Lennox, Manager, Investor Relations and Corporate Communications of Abercrombie & Fitch, 614-577-6751/