Abercrombie & Fitch Co’s quarterly same-store sales fell less than expected and its profit more than doubled as the teen apparel retailer boosted gross margin by offering fewer promotions and controlling costs.
Abercrombie’s sales have fallen for 11 quarters in a row, but the decline has slowed in the past two quarters, signs that business is improving after the company revamped merchandise, improved customers’ in-store experience and shuffled management.
Comparable-store sales fell 1 percent in the quarter, less than the 2.4 percent drop analysts on average were expecting, according to research firm Consensus Metrix. Total revenue fell 3.6 percent, to USD878.6 million, the smallest decline in six quarters and also less than analysts were expecting. Net income attributable to Abercrombie more than doubled to USD41.9 million.
(Source: CNBC)