Abercrombie’s Q4 profit plunges 58% but still tops Street; accelerates buyback
New Albany, Ohio – Abercrombie & Fitch Co.’s fourth-quarter net income plunged 58%, less than Wall Street expected, amid several one-time charges, including costs tied to the closure of its Gilly Hicks’ stores. The company’s board also approved a $150 million accelerated share repurchase plan, to be executed during the first quarter.
For the quarter ended Feb 1, Abercrombie’s income fell to $66.1 million from $157.2 in the year-ago period. For the full year, income declined 77% to $54.6 million from $237 million last year.
Net sales dropped 12% to $1.3 billion during the quarter. Same-store sales, including direct-to-consumer sales, fell 8%. By brand, same-store sales fell 6% for Abercrombie & Fitch, were down 8% for Abercrombie Kids and down10% for Hollister Co.
For the full fiscal year, sales declined 9% to $4.11 billion.
The retailer said it anticipates opening 16 full-price international stores throughout fiscal 2014, including an Abercrombie & Fitch flagship store in Shanghai in April 2014 and a small number of namesake mall-based stores.
In addition, the company plans to open a small number of international and U.S. outlet-based stores during the fiscal year. The company also expects to close approximately 60 to 70 stores in the U.S. during the fiscal year through natural lease expirations.
Abercrombie & Fitch cited the closure of 24 Gilly Hicks stores in the fourth quarter, as well as other asset impairment charges and charges related to its profit improvement initiative, as significantly reducing its reported net income.
“2013 was a challenging year, with sales and earnings falling well short of the objectives we set at the beginning of the year,” said Mike Jeffries, CEO of Abercrombie & Fitch. “After three years of positive growth in our combined U.S. chain stores plus direct-to-consumer comparable sales metric, that metric turned negative in 2013 against the backdrop of a challenging retail environment, particularly in the teen space. It is important that we return to positive growth, particularly in our core U.S. business, and the steps we are taking as we execute against our long-range strategic plan should put us in a position to achieve this goal.”
Big 5 Sporting Goods has competitive Q4, fiscal 2014
El Segundo, Calif. – Big 5 Sporting Goods Corp. released mostly positive financial results for the fourth quarter and fiscal year 2013. During the fourth quarter, net income rose 30% to $5.2 million from $4 million compared to the same period in the prior year.
Net sales increased about 2% to $248 million from $243.6 million, while same-store sales declined 0.5%. During the fiscal year, net income almost doubled, rising 87% to $27.9 million from $14.9 million. Net sales improved 6% to $993.3 million from $940.5 million and same-store sales rose 3.9%.
Steven G. Miller, chairman, president and CEO of Big 5, said a slowdown in firearms and ammunition sales as well as severe winter weather dampened fourth quarter same-store sales.
"We are pleased to have delivered another quarter of earnings growth in a very challenging retail environment," said Miller. "As we previously reported, our fourth quarter sales comparisons were impacted by cycling against the surge of firearm and ammunition sales during the prior year, as well as the lack of favorable winter weather across our western markets. We were able to offset most of the sales softness caused by these factors with positive performance in a number of our other product categories, which we believe reflects the favorable customer response to our merchandising and marketing strategies.”
Dollar Tree net income falls on varied sales
Chesapeake, Va. — Net income fell at Dollar Tree Inc. during the fourth quarter and fiscal year 2013, while net sales fell during the quarter and rose during the year. On a year-over-year basis, net income during the fourth quarter declined about 7% to $213 million from $228.6 million, and during the full year fell about 4% to $596.7 million from $619.3 million.
Net sales fell slightly to $2.23 billion from $2.24 billion during the quarter, and climbed 6% to $7.84 billion from $7.39 billion during the year. Same-store sales grew 1.2% during the quarter and 2.4% during the year. Dollar Tree cited the extra week in the fourth quarter and full fiscal year 2012, as well as continued economic challenges, as impacting results.
“I am proud of the company’s performance in the fourth quarter and full year 2013,” said Bob Sasser, CEO “Dollar Tree delivered record earnings and our comparable-store sales grew, despite severe weather, a shorter Holiday selling period and a challenging economic environment. More customers are shopping Dollar Tree, responding to our incredible values and convenient shopping experience. Our inventories are fresh and our stores are full of exciting merchandise for the spring season.”