Slowed consumer spending tripped up teen apparel retailer Abercrombie & Fitch Co., which on Friday posted a 4.2 percent dip in second-quarter profits, but the results still beat analysts’ expectations.
For the quarter ended Aug. 2, the company reported income of $77.8 million, or 87 cents a diluted share, compared with income of $81.3 million, or 88 cents a share, for the same year-ago period. Revenue was up 5.1 percent to $845.8 million, versus $804.5 million for the prior-year period last year. Analysts polled by Yahoo Finance expected earnings of 86 cents a share on revenues of $851.4 million.
Total comparable-store sales for all divisions were down by 4 percent, which included a 3 percent comps gain at core Abercrombie & Fitch stores. Comps at Hollister were down by 9 percent, while Ruehl had a decline of 22 percent.
For the six months, the New Albany, Ohio-based retailer saw income fall 1 percent to $139.9 million, or $1.55 a diluted share, from $141.4 million, or $1.53, a year ago. Sales rose 6.4 percent to $1.65 billion, from $1.55 billion.
“Our second-quarter financial results reflect difficult macroeconomic conditions and a significant slowdown in consumer spending,” said Michael Jeffries, chairman and chief executive officer. “However, we see these challenging times as a great opportunity to place more distance between us and the rest of specialty retail. We remain firmly committed to the aspirational positioning of our brands and to building the foundation that supports us as a truly multinational business.”
“Abercrombie’s priorities are strategically focused and should serve the company well in the long-term,” said retail analyst Jennifer Black of Jennifer Black & Associates. “Abercrombie is in the midst of a transition from a company geared domestically in terms of sales to a truly international company. By the end of 2009, Abercrombie intends to have 15 total stores in the various formats in Canada. As well, flagships in Copenhagen and Japan should come on board to join the London flagship.”
For the second half of the year, the company anticipates diluted earnings per share of between $3.40 and $3.45, and for the full year, it expects diluted EPS in the range of $4.95 to $5.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast