Abercrombie & Fitch Profits from Clothing Demand
Abercrombie & Fitch reported a higher quarterly profit Wednesday, helped by strength in its namesake chain of stores and improved margins.
Net income for the company's third quarter, ended Nov. 3, rose to $117.6 million, or $1.29 per share, from $102.0 million, or $1.11 per share, a year earlier.
Analysts, on average, had been expecting it to earn $1.28 per share, according to Reuters Estimates.
Abercrombie , a mall-based retailer of trendy fashions for teenagers and young adults, said total quarterly sales rose 13 percent to $973.9 million, while comparable-store sales, a key retail gauge that measures sales at its stores open at least a year, increased 1 percent.
Comparable store sales at its namesake Abercrombie & Fitch chain rose 3 percent, but fell 1 percent at its Hollister chain and declined 7 percent at its RUEHL stores.
For the second half of its fiscal year, it forecast earnings per share of $3.63 to $3.67. It said the low-end of the outlook is based on flat comparable store sales for the fourth quarter.