Abercrombie Income Jumps 79%
Columbus, Ohio, Teen fashion retailer Abercrombie & Fitch Co.’s third-quarter earnings surged 79% and the company raised its profit guidance for the year. Sales rose 35% to $704.9 million from $520.7 million a year ago, with particularly strong gains in the lower-priced Hollister Co. brand and the abercrombie kids stores. Same-store sales rose 25%.
Abercrombie earned $71.6 million, or 70? a share, for the three months ended Oct. 29 compared with $39.9 million, or 42? a share, in the same period last year, when the company paid nearly $33 million to settle three class-action lawsuits. Excluding a one-time charge from an executive severance package, Abercrombie earned $79.8 million, or 88? per share, in the latest quarter. Analysts had predicted earnings of 80? a share.
“An intense focus on getting it right is exactly why Abercrombie & Fitch is better positioned now than it has ever been,” CEO Mike Jeffries said.
At the end of the quarter, Abercrombie operated 354 signature stores, 297 Hollister Co. stores and six Ruehl stores. The company plans to open 29 additional stores by yearend.
Finlay Signs New Agreement With Federated
New York City, Finlay Enterprises, the leading operator of licensed fine-jewelry departments in department stores, has signed a new three-year agreement with Federated Department Stores for the four Macy’s divisions in which Finlay currently operates. The new agreements were negotiated as a result of Federated’s recent acquisition of The May Department Stores Co. and the merged companies’ subsequent divisional realignment.
Couche-Tard Has Strong Quarter
Laval, Canada, Alimentation Couche-Tard posted strong second-quarter growth: Net earnings jump 44.9% to $55.5 million in the quarter ended Oct. 9. Revenues increase by 29.9% or $551.6 million to $2.39 billion. The company also signed an agreement in the second quarter to acquire 16 sites in New Mexico, United States and two agreements in the third quarter for 26 sites in Tennessee and seven sites in Ohio.