Abercrombie & Fitch (ANF) Holiday Comps Fell 6%; Boosts FY13 Outlook

January 9, 2014 4:34 PM EST
Abercrombie & Fitch Co. (NYSE: ANF) reported on the Company's performance for the nine-week period ended January 4, 2014.

Total comparable sales for the nine weeks ended January 4, 2014, including direct-to-consumer sales, decreased 6% with comparable U.S. sales decreasing 4% and comparable international sales decreasing 10%. Total direct-to-consumer comparable sales increased 25%. Comparable sales are compared to the nine-week period ended January 5, 2013.

Based on higher than expected sales for the fourth quarter-to-date and ongoing cost reduction efforts, the Company now expects full year adjusted non-GAAP earnings per diluted share to be in the range of $1.55 to $1.65, compared to prior guidance of $1.40 to $1.50. This updated projection assumes January comparable sales below the quarter-to-date trend reflecting a stronger prior year comparable sales base.

*** The Street sees Q4 EPS of $0.89 and FY13 EPS of $1.47.

The guidance for the full year does not include charges related to the Company's restructuring plans for the Gilly Hicks brand, other impairment and store closure charges, or charges related to the implementation of the Company's profit improvement initiative.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:

"Given the challenging and promotional retail environment, we are pleased that our quarter-to-date performance has exceeded expectations. Our direct-to-consumer business was particularly strong, reaching a record level of approximately 25% of total sales in December, and we also saw sequential improvement in comparable store sales. In addition, fall season carryover inventory levels are well controlled as we move into the new season.

We continue to focus on execution against our long-term strategic plans, which we believe will drive meaningful improvements in our business in 2014 and beyond."

The Company will release fourth quarter results prior to the market's open on Wednesday, February 26, 2014 and hold a conference call at 8:30 AM Eastern Time. To listen to the conference call, dial (877) 852-6561 and ask for the Abercrombie & Fitch Quarterly Call or go to www.abercrombie.com. The international call-in number is (719) 325-4858. This call will be recorded and made available by dialing the replay number (888) 203-1112 or the international number (719) 457-0820 followed by the conference ID number 7867881 or through www.abercrombie.com.


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