Much-Higher-than-Expected Profits Posted by Abercrombie & Fitch
US fashion retailer Abercrombie & Fitch posted a fall in the third-quarter earnings, but the figures have been much better than what analysts had expected. The revenue generated and per share price earnings managed to beat estimates by a large margin. Strict cost cuts are being stated as the reason for a restrained fall in earnings by the company.
For the third-quarter up-to October 31, the retailer of clothing targeted at the 18-22 age group, posted a fall in earnings to $38.3 Million, or 44 cents per share, which is a substantial drop from the figure of $63.9 Million, or 72 cents per share, posted for the same period last year. Analysts polled by Thomson Reuters had estimated the per share price to be 20 cents.
The company revealed that same-store sales fell by 18% at flagship stores, 22% at the Abercrombie kids' outlets, 26% at Hollister and 30% at Ruehl. There are speculations that the firm might close Ruehl down by the end of the 2009 fiscal year.
Post the revelation of third-quarter figures, Abercrombie & Fitch shares rose by 6% in the NY Stock Exchange to trade at a high new of $39.00. The company is currently in the process of opening one flagship A&F store in Tokyo, as well as adding 5 more Hollister stores across Europe.
United Kingdom News
- Mass market crucial for Macau Casino Industry’s recovery: Bernstein Analysts
- William Hill to merge online and retail divisions with Phil Walker in-charge
- BGC impressed by steps taken by UK casinos, disappointed by Government’s response
- Stephen Cohen reappointed as Commissioner of the Gambling Commission
- Online Sports Bettors don’t turn to Online Casinos during absence of sports: Research