Abercrombie & Fitch Sees Growth in China

Aug 26, 2013 4:52 PM  By

Abercrombie & Fitch Co. reported strong growth in its direct-to-consumer business in China, according to its second quarter report.

Abercrombie & Fitch also said it has had excellent progress on its profit improvement initiative during the quarter.

“We now expect savings from this initiative to exceed $100 million annually,” said Mike Jeffries, chief executive officer and chairman of the board chairman of Abercrombie & Fitch.

Jeffries added, “We are nearing completion of our long-term strategic review, and we are confident that this will provide us with a clear roadmap for sustainable growth in sales, profitability and return on invested capital.”

Abercrombie & Fitch said total company direct-to-consumer sales increase 21% to $154.3 million. Net sales for the retailer decreased 1% to $945.7 million compared to $951.4 million in 2012. Total U.S. sales decreased 8% to $597.3 million, including direct-to-consumer sales.

Total international sales including direct-to-consumer increased 15% to $348.4 million.

The gross profit rate for the second quarter was 63.9%.