Abercrombie Q1 profit down 88%, hurt by 'difficult' European market

New Albany, Ohio -- Abercrombie & Fitch Co. reported a 88% decline in its first quarter profit, hurt in part by difficult market conditions in Europe.

For the quarter ended April 28, retailer earned $3.0 million compared with $25.1 million last year. Sales rose 10% to $921.2 million, but same-store sales were down 5%.

"While we are disappointed that European sales trends remain challenging in a very difficult macroeconomic environment, we are largely satisfied with our overall performance for the quarter in that context,” stated Mike Jeffries, CEO and chairman, Abercrombie & Fitch.

Jeffries said the company’s U.S. business, including direct-to-consumer, increased 4% on a comparable basis, on top of a strong performance last year. By brand, comparable store sales decreased 4% for Abercrombie & Fitch, decreased 11% for Abercrombie kids, and decreased 5% for Hollister Co.

“Our international business comped negatively, but the economics remain strong and we delivered overall international sales growth of 42% including a strong performance in direct-to-consumer,” he said. “With cotton cost issues now largely behind us, we look forward to strong year over year earnings growth in the back half of the year."
 

Recommended stories

Login or Register to post a comment.