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Abercrombie & Fitch Beats Reduced Guidance

Third-quarter loss is lower than projected when it warned on profits Nov. 5.

Abercrombie & Fitch Co. swung to a loss in the third quarter but finished the period with less red ink than projected in its dire warning earlier in the month.

This story first appeared in the November 22, 2013 issue of WWD.  Subscribe Today.

In the 13 weeks, the New Albany, Ohio-based teen retailer reported a net loss of $15.6 million, or 20 cents a diluted share, compared with net income of $84 million, or $1.02, in the year-ago period.

Stripping out substantial charges for the closure of Gilly Hicks and other corporate initiatives, adjusted net income was 52 cents a diluted share, 7 cents above the high end of revised guidance provided when it revealed the Gilly Hicks closure and updated its expectations for the quarter on Nov. 5.

Sales declined 11.7 percent to $1.03 billion from $1.17 billion in the third quarter of 2012, with comparable sales sinking 14 percent.

A&F continued to project a low-double-digit decline in comps for the fourth quarter.

“However, we continue to work hard to offset these conditions and are aggressively pursuing initiatives we believe will improve the sales trend as we go forward,” said Mike Jeffries, chairman and chief executive officer.

A&F, which operates Hollister and Abercrombie stores in addition to its flagship brand, outlined its plans to upgrade merchandising and systems during investor presentations held on Nov. 6.

 

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A&F continued to project a low-double-digit decline in comps for the fourth quarter.

“However, we continue to work hard to offset these conditions and are aggressively pursuing initiatives we believe will improve the sales trend as we go forward,” said Mike Jeffries, chairman and chief executive officer.

A&F, which operates Hollister and Abercrombie stores in addition to its flagship brand, outlined its plans to upgrade merchandising and systems during investor presentations held on Nov. 6.

Shares rose 1.7 percent, to $35.58, in the first hour of trading following the disclosure of results today.