Abercrombie Q3 profit misses Street
New Albany, Ohio — Abercrombie & Fitch earnings rose 1.7% in the third quarter, well short of analysts’ estimates, as rising costs pressures offset a big jump in sales.
For the quarter ended Oct. 30, the chain reported $50.9 million in earnings, up from $50 million in the same period last year. Total sales rose 21% to $1.08 billion, more or less in line with Wall Street estimates.
Total international sales including e-commerce rose 56% to $255.7 million. In the United States, sales rose 14% to $820.2 million.
Saks announces iPad app
New York City — Saks Fifth Avenue announced the availability of its shopping application for the iPad. The free app, available worldwide from the Apple App Store, is an entirely shoppable app, and customers can create wishlists that can be shared through email, Facebook, and/or Twitter.
“Saks Fifth Avenue is so thrilled to offer customers the ability to engage directly with the Saks brand, connect in new ways with our store online and learn about in store events. Fashion devotees are now able to enjoy a robust mobile shopping experience," said Denise Incandela, chief marketing officer and president of Saks Direct.
Target Q3 profit up 3.7%, beats expectations
Minneapolis — Target Corp.’s profit increased a better-than-expected 3.7% in the third quarter to $555 million, up from $535 a year earlier. The retailer’s performance was helped by solid spending and improvement in its credit card business.
Revenue rose 5.4% to $16.05 billion. Same-store sales were up 4.3% in the quarter.
“We’re very pleased with our third-quarter financial results," said Gregg Steinhafel, Target’s chairman, president and CEO in a statement. "We’re confident that we have the right strategy and team in place to drive continued strong performance this holiday season and well into the future."
Target said that its third-quarter average receivables for its credit card segment declined 9.9% to $6.2 billion in 2011 from $6.9 billion in the same period a year ago. Bad debt expense was $40 million during the third quarter, down from $110 million in the year-ago period.
Target REDcards, which include credit cards and debit cards, were used for 9.5% of sales at Target stores during the quarter, up from 5.5% a year ago.