Abercrombie & Fitch Sees Growth in China

Content Manager

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%.

 

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.