New Albany, Ohio -- Abercrombie & Fitch Co. on Tuesday reported a profit of $50 million for the quarter ended Oct. 30, compared with $38.8 million in the year-ago period. Its results were helped by improving sales in the United States and international revenue.
Sales rose 18% to $886 million, matching Wall Street expectations. Same-store sales increased 7%. By division, same-store sales rose 8% at namesake stores, 2% at Abercrombie kids stores and 7% at surf-themed Hollister stores.
The retailer continues to expand internationally to offset slower U.S. growth, and has also cut prices to compete with lower-priced rivals such as Aeropostale and American Eagle Outfitters. Abercrombie expects to open about 20 international mall-based Hollister stores during the year, 11 of which will be in the fourth quarter.
It also plans to open its first Abercrombie & Fitch store in Puerto Rico, a Hollister store on Fifth Avenue in New York and its first international Gilly Hicks lingerie store, in the United Kingdom.
The company operates a total of 1,106 stores, consisting of 340 Abercrombie & Fitch stores; 201 Abercrombie kids stores; 510 Hollister Co. stores and 17 Gilly Hicks stores domestically. The company also operates seven Abercrombie & Fitch stores, four Abercrombie kids stores and 27 Hollister Co. stores internationally.