Abercrombie & Fitch Q3 sales increase 9 percent

Abercrombie & Fitch has reported unaudited results which

reflected net income of 71.5 million dollars (Rs 391 crores) and net income per diluted share of 0.87 dollars (Rs 47.7) for the thirteen weeks ended October 27, 2012, compared to net income of 50.9 million dollars (Rs 279 crores) and net income per diluted share of 0.57 dollars (Rs 31.3) for the thirteen weeks ended October 29, 2011.

Said Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch, “These significantly improved financial results reflect progress on several fronts over the past quarter. Our US chain store business posted healthy growth on top of a strong quarter a year ago, and we saw sequential trend improvement in our international business. Our principal focus remains to execute against our key strategic initiatives to leverage our iconic brands and to continue to be judicious in our use of our shareholders` capital to drive long-term shareholder value.”

Net sales for the thirteen weeks ended October 27, 2012 increased 9 percent to 1.170 billion dollars (Rs 6,426 crores) from 1.076 billion dollars (Rs 5,910 crores) for the thirteen weeks ended October 29, 2011. Total U.S. sales, including direct-to-consumer sales, were approximately flat at 818.6 million dollars (Rs 4, 496 crores). Total international sales, including direct-to-consumer sales, increased 37 percent to 351.1 million dollars (Rs 1,928 crores). Total Company direct-to-consumer sales, including shipping and handling, increased 20 percent to 158.3 million dollars (Rs 869 crores).

Based on having exceeded its objectives for the third quarter, the Company is now projecting full year diluted earnings per share of approximately 2.85 dollars (Rs 156.5) to 3.00 dollars (Rs 164.7). This projection assumes a mid-single digit percentage decrease in comparable store sales for the fourth quarter and a slightly higher gross margin rate for the quarter relative to the year-to-date rate.