Shares of Abercrombie & Fitch Co. rose 15.1 percent in early afternoon trading, helped by a surprise comparable-store sale improvement from Hollister even though the company missed fourth-quarter EPS and sales estimates.Net income for the quarter ended Jan. 28 fell 15.5 percent to $48.8 million, or 71 cents a diluted share, from $57.7 million, or 85 cents, a year ago. Net sales declined 6.9 percent to $1.04 billion from $1.11 billion.Wall Street was expecting EPS of 75 cents on net sales of $1.05 billion.Comparable-store sales for the company were down 5 percent. By brand, comps for Abercrombie were down 13 percent, but the surprise was a 1 percent comps gain for Hollister during what was a challenging holiday selling season. The company said direct-to-consumer and omnichannel sales grew to 31 percent of total net sales for the quarter, compared with 28 percent of net sales a year ago.Further, gross profit rate for the quarter was 59.3 percent. Excluding certain year-ago items, the company said gross profit fell 90 basis points on a constant currency basis due mostly to lower average unit retail that was partially offset by lower average unit cost.Fran Horowitz, chief executive officer, said, “Results for the quarter reflect a still challenging and competitive retail environment, however we continue to make progress on our strategic priorities.”Another high point for the company was that international markets improved from the last quarter, for both the Abercrombie and Hollister brands. Horowitz said that the direct-to-consumer business continued to deliver positive comps in both the U.S. and international markets.The ceo noted that 2016 was a “year of significant progress on each of our strategic priorities. We continued to proactively respond to the evolving retail landscape through our store closure and channel optimization initiatives. We also stayed close to our customers to understand what inspires them, which helped inform our planning and executions.”She added that the company had begun to communicate “evolved identities for each of our brands,” as well as improvements to the customer experience through the roll out of store remodels.As for 2017, she said that the environment is “likely to remain challenging,” and emphasized that the retailer “has a strong balance sheet and continues to aggressively manage costs in order to continue our investments in strategies to provide our customers with compelling new experiences through a clearly defined brand voice, to position our business for sustainable growth.”Shares of Abercrombie were trading at $13.45 at 12:25 p.m.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)