Abercrombie & Fitch Co. Reports Fourth Quarter Results

Abercrombie & Fitch Co. (NYSE: ANF) today reported GAAP net income per diluted share of $0.71 for the fourth quarter ended January 28, 2017, compared to GAAP net income per diluted share of $0.85 for the fourth quarter last year.

In addition, the company reported GAAP net income per diluted share of $0.06 for the full year, compared to GAAP net income per diluted share of $0.51 for the full year last year. Excluding certain items, the company reported adjusted non-GAAP net loss per diluted share of $0.06 for the full year, compared to adjusted non-GAAP net income per diluted share of $1.12 for the full year last year.

The net effect of changes in foreign currency exchange rates on a year-over-year basis adversely impacted fourth quarter and full year results by approximately $0.05 and $0.25 per diluted share, respectively.

Fran Horowitz, Chief Executive Officer, said: “Results for the quarter reflect a still challenging and competitive retail environment, however we continue to make progress on our strategic priorities. Hollister, our largest brand, achieved positive comp sales and the Abercrombie brand renewal continues, although it is a work in progress. International markets improved measurably from last quarter, for both Abercrombie and Hollister brands, and the direct-to-consumer business continued to deliver positive comparable sales in both the U.S. and international markets. However, the competitive environment resulted in more promotional activity and a lower gross margin rate than planned.

While overall results did not meet expectations, 2016 was a year of significant progress on each of our strategic priorities. We continued to proactively respond to the evolving retail landscape through our store closure and channel optimization initiatives. We also stayed close to our customers to understand what inspires them, which helped inform our planning and execution. We began to communicate evolved identities for each of our brands, and made improvements to the customer experience through the roll out of store remodels, and ongoing investments in direct-to-consumer and omnichannel capabilities across both brands.

While the environment is likely to remain challenging in 2017, we have a strong balance sheet and continue to aggressively manage costs in order to continue our investments in strategies to provide our customers with compelling new experiences through a clearly defined brand voice, to position our business for sustainable growth.”

Fourth Quarter Sales Results
Net sales for the fourth quarter of $1.036 billion were down 7% from last year, with comparable sales for the fourth quarter down 5%.

By brand, net sales for the fourth quarter decreased 13% to $442.4 million for Abercrombie and decreased 2% to $594.0 million for Hollister from last year.

By geography, net sales for the fourth quarter decreased 8% to $688.2 million in the U.S. and decreased 5% to $348.2 million in international markets from last year.

Direct-to-consumer and omnichannel sales grew to approximately 31% of total company net sales for the fourth quarter, compared to approximately 28% of total company net sales last year.
more detail at:  http://www.abercrombie.com/anf/investors/investorrelations.html

Back To Top
×Close search
Search