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Abercrombie & Fitch (ANF) Misses Q3 EPS Views as Higher Costs Crimp Margins

November 16, 2011 10:17 AM EST Send to a Friend
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Abercrombie & Fitch Co. (NYSE: ANF) shares are dipping sharply Wednesday morning following mixed third-quarter 2011 results.

Net income rose 1.7 percent from $50.04 million in the same quarter last year last year to $50.905, or 57 cents per diluted share.

Sales saw an impressive 21.5 percent rise from $885.78 million in the year-ago quarter to $1.076 billion.

The Street was expecting earnings of 71 cents per share and revenue of $1.07 billion.

Gross profit was cut down by a near-20 percent increase in store and distribution expense, though the expense with respect to overall revenue fell from 43.5 percent to 42.9 percent.

Comparable-store sales rose 7 percent in the quarter, with comps rising 4 percent for Abercrombie & Fitch, 6 percent for abercrombie kids, and 8 percent for Hollister Co.

"While our results for the third quarter were impacted by costing challenges combined with greater uncertainty in the macroeconomic environment, we remain very confident in our strategy, the underlying strength of our brands and our ability to create long-term shareholder value," commented CEO Mike Jeffries. "Our focus remains on execution against our long-term strategy and roadmap objectives."

Shares of Abercrombie & Fitch are 15.6 percent lower Wednesday morning.




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