Abercrombie Profit Up 9%
New Albany, Ohio Abercrombie & Fitch Co. said Friday that its fourth-quarter earnings rose 9% on increased sales from its expanding Hollister Co. chain that cater to teens and its abercrombie stores for children.
The apparel retailer said it earned $216.8 million for the quarter ended Feb. 2, compared with a profit of $198.2 million a year ago. Fourth-quarter sales rose 8% to $1.23 billion, from $1.14 billion.
At the end of the quarter, Abercrombie operated 447 Hollister Co. stores compared with 390 stores the year before, and 201 abercrombie stores compared with 177 stores the year before.
For the year, Abercrombie earned $475.7 million compared with $422.2 million the previous year. Sales rose 13% to $3.75 billion for the year, up from $3.32 billion a year ago. There was an extra week in the year-ago period. Same-store sales fell 1% for the year.
Senate looks to block retail banking ventures
WASHINGTON Retailers looking to own banks face a new roadblock, now that the Senate Banking, Housing and Urban Affairs Committee voted to approve a bill that would limit the type of businesses that could own industrial loan companies.
According to reports, the committee voted 11 to 10 to draft a bill presented by Chairman Christopher Dodd, D-Conn., that would prohibit non-financial companies from owning banks. The deal would not affect companies, that already own industrial loan companies, however they would be subject to additional regulation, reports said.
The vote was divided amongst democrats and republicans, with republicans opposed to the bill. Sen. Robert Bennet, R-Utah, reportedly stated that the banks are needed to supply credit to niche markets, and that there have been no issues with existing commercially owned international loan companies.
Liz Claiborne cautious on 4Q estimates
NEW YORK Liz Claiborne today pre-announced an expected earnings loss of 25 cents to 35 cents per share for the year 2007, compared to diluted earnings per share of $2.46 for the full year 2006. The company added that adjusted diluted EPS for the year 2007 are currently estimated to be in the range of $1.25 to $1.35, compared to previous adjusted diluted EPS guidance of $1.70 to $1.80. Adjusted diluted EPS were $2.99 for the year 2006.
Liz Claiborne reported that net sales for the year 2007 were approximately $4.6 billion, a decrease of 1.4% from the comparable 2006 year. According to the company, the predicted results reflect continued weakness in the partnered brands segment, which includes the brands under strategic review, partially offset by positive performance in the direct brands segment.
For the fourth quarter of 2007, the company expects to report a loss per share of 90 cents to $1.00, compared to diluted EPS of 71 cents for the fourth quarter 2006. Adjusted diluted EPS for the fourth quarter of 2007 is currently estimated to be in the range of 15 cents to 25 cents compared to adjusted diluted EPS of 94 cents for the fourth quarter 2006. Net sales for the fourth quarter of 2007 were approximately $1.2 billion, a decrease of 3% from the comparable 2006 period.
William McComb, ceo of Liz Claiborne, said: “While 2007 marked a very difficult period, we see the fundamentals in this company heading in the right direction. We are steadfast in our commitment to rebase our costs, to invest in design and retail capabilities, and to complete our strategic review by the end of the first quarter. The conservative view we are taking in our 2008 guidance-specifically around our partnered brands performance-is only prudent given the challenging retail environment.”