Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: “Our first quarter financial results reflect the strength of our business strategy and the execution of our plan. Despite difficult selling conditions that impacted most retailers during this period, we enhanced each of our brands while delivering record profit. We continue to grow our business for the long term by opening in new markets and developing new concepts, while achieving our goal of delivering strong short term results as we continue to build for the future.”
Net sales for the thirteen weeks ended May 5, 2007 increased 13% to $742.4 million from $657.3 million for the thirteen weeks ended April 29, 2006. Total Company direct-to-consumer net sales increased 43% to $43.5 million for the thirteen week period ended May 5, 2007, compared to the thirteen week period ended April 29, 2006. Total Company comparable store sales decreased 4% for the thirteen weeks ended May 5, 2007, compared to the thirteen weeks ended May 6, 2006.
The gross profit rate for the quarter was 65.6%, up 20 basis points compared to last year. The improvement in gross profit rate was due to an improvement in initial markup partially offset by a slightly higher markdown rate versus last year.
The Company reaffirmed its previously disclosed earnings guidance which stated it expects net income per diluted share for the first-half of Fiscal 2007 to be in the range of $1.47 to $1.52, representing between 10% to 13% earnings growth over the first half of Fiscal 2006.
On March 22, 2007, the Company opened its first European location, an Abercrombie & Fitch flagship at 7 Burlington Gardens, London. The London flagship is off to an excellent start exceeding the Company’s initial productivity and profit expectations.