ABERCROMBIE & FITCH DOUBLES EARNINGS IN THIRD QUARTER
NEW YORK — Abercrombie & Fitch Inc., the hot Limited Inc. division, said Monday that profits in the third quarter more than doubled to $4.7 million, or 9 cents a share.
It was A&F’s first financial report since going public and it was a winner. The chain, which specializes in preppy men’s and women’s casual sportswear and outdoor apparel, including hiking socks, jackets, jeans, cotton boxer shorts, work shirts and basics, was among the few retailers to surpass Wall Street estimates last quarter. Analysts had projected that the chain would post 8 cents for the period.
A&F earned $1.6 million, or 3 cents, in the year-ago period.
The figures have been adjusted for its initial public offering of seven million shares, priced at $16 a share in September.
The results of the report came out late Monday, when A&F stock closed at 21 1/2, up 3/8, on the New York Stock Exchange.
Operating income soared to $9.2 million from $4.3 million.
Sales in the quarter ended Nov. 2 surged 53.2 percent to $87.7 million from $57.2 million, and same-store sales jumped 19 percent.
Gross margins increased to 35.3 percent of sales from 34.1 percent.
In the nine months, A&F earned $4 million, or 8 cents against a loss of $887,000 a year ago. Sales climbed 51.7 percent to $196.1 million from $129.3 million.