A&F results upbeat despite decline

Abercrombie & Fitch today reported second quarter net income of $77.8 million for the thirteen weeks ended August 2, 2008, compared to $81.3 million for the thirteen weeks ended August 4, 2007. A&F stated total Company net sales increased 5% to $845.8 million whereas comparable store sales decreased 4%.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: "Our second quarter financial results reflect difficult macroeconomic conditions and a significant slowdown in consumer spending. However, we see these challenging times as a great opportunity to place more distance between us and the rest of specialty retail. We remain firmly committed to the aspirational positioning of our brands and to building the foundation that supports us as a truly multinational business. We will continue to focus on what we do best ... providing the best casual lifestyle brands for our customers by continuously elevating the quality of our product and the emotional store experience. We believe this gives us a competitive advantage and is critical to our long-term success."

A&F plans to open an Abercrombie & Fitch and Abercrombie flagship in Milan in late 2009. This adds to the 2009 flagship opening schedule, which currently includes a Hollister and Abercrombie flagship in New York and an Abercrombie & Fitch flagship in Copenhagen and Tokyo.

A&F currently operates 353 Abercrombie & Fitch stores, 209 Abercrombie stores, 479 Hollister Co. stores, 25 RUEHL stores and eight Gilly Hicks stores in the United States at the end of the second quarter. The Company also operated three Abercrombie & Fitch stores and three Hollister Co. stores in Canada, and one Abercrombie & Fitch store in London, England.

Image: A&F campaign