×
261
Fashion Jobs
RELIANCE INDUSTRIES LTD
Sales Officer - Saree Specialist - Chennai t.Nagar
Permanent · CHENNAI
RELIANCE INDUSTRIES LTD
Hiring For Sales Officer : Reliance Retail - Ajio Business
Permanent · HYDERABAD
SPACE CONSULTANTS
Manager-Sales&Marketing
Permanent · Bhiwani
RELIANCE INDUSTRIES LTD
Hiring For Sales Officer : Reliance Retail - Ajio Business
Permanent · PANCHKULA
GENIUS CONSULTANTS LIMITED
HR Executive(Female)@Leading Hosiery Manufacturing Company in Agarpara
Permanent · KOLKATA
SHOPPERS STOP LTD
Unit HR Head
Permanent · MUMBAI
FLOOR & FURNISHINGS INDIA PRIVATE LIMITED
Sales Executive/ Sales Officer
Permanent · PANCHKULA
SELECTIVE GLOBAL SEARCH PVT. LTD.
Retail Sales Executive
Permanent · MUMBAI
RELIANCE INDUSTRIES LTD
Hiring For Sales Officer : Reliance Retail - Ajio Business
Permanent · HALDWANI
RELIANCE INDUSTRIES LTD
Hiring For Sales Officer : Reliance Retail - Ajio Business
Permanent · Aligarh
SREEDHARA TEXTILES PRIVATE LIMITED
Deputy Manager - Fabric
Permanent · COIMBATORE
PANACEA VENCER
we Have Opening For Accounts Manager & Finance Manger For Garments
Permanent · COIMBATORE
JOBZ DADDY
Category Head For Home Decor of The Top Most Designer of India
Permanent · GURUGRAM
SMART SOURCE
Manager Market Place - Leading Fashion Retail - Bangalore
Permanent · Bengaluru
NCDI PLACEMENT CONSULTANCY
Accounts Executive For Retail Industry
Permanent · Lucknow
NCDI PLACEMENT CONSULTANCY
Customer Relationship Managere For Retail Industry
Permanent · LUCKNOW
PRIME PLACEMENT AND MANPOWER SERVICES
International Sales Executive - Female - Khokhra - Ahmedabad
Permanent · Ahmedabad
MIRRAW.COM
Production Manager | Mirraw
Permanent · MUMBAI
LIFESTYLE BRANDS
Senior Executive - Accounts - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Area Manager-Projects Execution (Telangana &Amp; Andra Pradesh)-Hyderabad
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Financial Manager - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Training Manager, Planet Fashion - Bangalore
Permanent · BENGALURU

Abercrombie posts blowout quarter on higher margins

By
Reuters
Published
today May 18, 2011
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

May 18 - Abercrombie & Fitch Co beat Wall Street's quarterly profit estimates for the fourth time in a row, as the teen retailer gained market share from rivals in both domestic and international markets, sending its shares up 5 percent at open.

Abercrombie & Fitch
Abercrombie is opening its first Parisian boutique on May 19th

The company's decision to give up its high-priced-and-won't-discount stance has helped, with teenagers happily returning to its stores to shop for denims and T-shirts.

And as shoppers have resumed spending relatively more on clothes, Abercrombie has consistently gained market share from rivals such as American Eagle Outfitters and Aeropostale.

"The consumer, usually mom and dad shelling out the bucks at the cash register, is perceiving the company's products to offer good value," Wall Street Strategies analyst Brian Sozzi said.

"While others in teen apparel have removed product quality to combat cost inflation and raised prices on those cheaper blends, Abercrombie & Fitch has maintained quality and prices in some classifications," the analyst said.

During the first quarter, sales rose 22 percent to $836.7 million -- 13 percent in the United States, and 64 percent internationally.

It earned $25.1 million, or 28 cents a share. From continuing operations, it earned 27 cents a share, while analysts, on average, had expected earnings of 12 cents a share, according to Thomson Reuters I/B/E/S.

Gross margins rose 230 basis points to 65 percent, but Abercrombie said it expects margin pressure in the second quarter as it balances higher input costs.

"The first quarter will be the high water mark for Abercrombie's gross margin as drivers such as lower average unit costs and freight benefits vanish amid a world of inflationary pressures," analyst Sozzi said, but added that price increases would help the company offset these pressures to some degree.

Most apparel companies have had to raise prices as costs of raw materials like cotton and labor costs in China rise.

Abercrombie, which operates more than 1,000 stores in its Abercrombie & Fitch and Hollister chains, is also relying on international expansion even as it closes weaker U.S. stores.

On Wednesday, the company said it expects to open five international Abercrombie & Fitch flagship locations and up to 40 international mall-based Hollister stores, and "a minimal number of domestic store openings" in 2011.

Abercrombie, which also runs the abercrombie kids and Gilly Hicks stores, said in February it planned to open its first Hollister stores in mainland China and Hong Kong, and Abercrombie & Fitch flagship stores in Paris, Madrid, Dusseldorf, Brussels, Dublin and Singapore.

Shares of Abercrombie were up 3.6 percent at $75.77 after rising to a high of $76.75 on Wednesday on the New York Stock Exchange.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Sriraj Kalluvila, Maju Samuel)

© Thomson Reuters 2020 All rights reserved.