Abercrombie & Fitch Q2 effective tax rate 26.3 percent

REPORT_ Abercrombie & Fitch Q2 effective tax rate 26.3 percent Abercrombie & Fitch

gross profit rate for the second quarter was 62.1 percent, 180 basis points lower than last year. The stores and distribution expense rate for the quarter was 47.9 percent of net sales, down 200 basis points from last year. Marketing, general and administrative expense for the second quarter showed a 6 percent decrease.

The effective tax rate for the second quarter was 26.3 percent compared to 34.7 percent for last year. On an adjusted non-GAAP basis, the effective tax rate for the second quarter was 29.2 percent.

Comparable sales by brand, including direct-to-consumer, decreased one percent for Abercrombie & Fitch, decreased 6 percent for abercrombie kids, and decreased 10 percent for Hollister Co.

US comparable store sales for the second quarter showed slight sequential improvement, while international comparable store sales for the second quarter sequentially declined, particularly in Europe. Direct-to-consumer comparable sales were positive in the second quarter, but by a lower percentage than in the first quarter.

Abercrombie & Fitch is based in Ohio. Mike Jeffries, Chief Executive Officer, said: “In the past quarter, we made great progress in evolving the fashion component of our assortment. In a continued challenging environment, sales for the second quarter were somewhat below plan. We are confident that the evolution of our assortment will drive further improvements going forward. Despite the challenging conditions, we were able to exceed our earnings expectations. We remain highly focused on returning to top-line growth and driving long-term value for our shareholders.”