Teen apparel retailer abercrombie and fitch. reports earnings for the fiscal second-quarter quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: abercrombie and fitch. has seen sinking sales amid the recession, as it kept its price points among the highest in the teen sector and waited for a rebound. Over the past few months it has planned more sales and offered lower entry-level prices, but sales are still expected to sink during the quarter ended Aug. 2. Meanwhile, competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., with their emphasis on low prices and basics, have fared better.
Sales in stores open at least on year, or so-called same-store sales, fell 28 percent in July, 32 percent in June and 28 percent in May.
The company said it was shuttering its high-priced Ruehl line of handbags and apparel in a move expected to be complete in January 2010. New Albany, Ohio-based abercrombie and fitch also operates surf-themed Hollister, abercrombie and fitch , its store for children, and Gilly Hicks, an intimate apparel line.
BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, predict a loss of 7 cents per share on revenue of $647.9 million. The company said, according to a preliminary tally, sales fell 23 percent to $648.5 during the quarter.
ANALYST TAKE: In a note to investors, RBC Capital Markets analyst Howard Tubin said in a client note Tuesday lowering price points and offering more "current-season" fashion in stores are encouraging acts, but he said it will take more of an effort for results to improve.
"We remain on the sidelines with respect to the shares until we see significant newness offered within the assortments across all concepts," wrote Tubin, who rates the company "Average Risk."
Stifel Nicolaus analyst Richard Jaffe wrote in a note to investors that he expects a loss of 3 cents per share, with weak women's apparel offerings and the recession holding back results.
"On a positive note we believe management has demonstrated better inventory management, which bodes well for the second half and abercrombie and fitch we believe that the markdown cadence will likely be more effective going forward (shallower markdowns taken throughout the quarter instead of deep clearance activity at the end of the quarter)," he wrote.
WHATS AHEAD: Analysts will be looking for any indication about how back-to-school sales are doing, an update on closing Ruehl stores and any indications about how the company is planning for the upcoming holiday season.
STOCK PERFORMANCE: Shares rose 13 percent during the three months ended Aug. 1.
Copyright 2009 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
2009年9月23日星期三
2009年9月22日星期二
MOA Abercrombie & Fitch discriminated against autistic teen, judge says
abercrombie and fitch seems to have some serious issues understanding and accommodating people with
disabilities. Just one of the retailer's many many downfalls in life.
The store located at the Mall of America in Minnesota abercrombie and fitch discriminated against a 14-year-old autistic female
customer in 2005, a judge said.
The clothing retailer was sued by the Minnesota Department of Human Rights over the incident with an Apple
Valley teen.
More from KAAL:
According to the human right's department's abercrombie and fitch summary of the case, store employees refused to let the
teenager's sister accompany her into a fitting room, even after she explained that the girl had special
needs.
The workers said the store policy was to allow only one person into a fitting room at a time in order to
reduce the risk of shoplifting.
he girls' mother asked for a copy of the policy abercrombie and fitch at the store and repeatedly contacted the retailers
corporate offices in search of more information. When she was denied information she filed a complaint with
the human rights department.
When the human rights department was unable to solve the conflict directly with AF, they sued.
The judge said the store discriminated against the teen by not making reasonable accommodations for her
disability. The judge also said the retailer officials were general assholes when approached about the
incident, didn't follow their own policies, and even denied the girl was disabled.
The retailer must pay more than $155,000, abercrombie and fitch including $25,000 to the teen. AF plans to appeal.
AF was also in the news recently when a former employee said she was forced to work in the backroom because
she had a prosthetic arm that didn't fit their image. The retailer was found to have broken employment law
and had to pay her of unlawful harassment.
disabilities. Just one of the retailer's many many downfalls in life.
The store located at the Mall of America in Minnesota abercrombie and fitch discriminated against a 14-year-old autistic female
customer in 2005, a judge said.
The clothing retailer was sued by the Minnesota Department of Human Rights over the incident with an Apple
Valley teen.
More from KAAL:
According to the human right's department's abercrombie and fitch summary of the case, store employees refused to let the
teenager's sister accompany her into a fitting room, even after she explained that the girl had special
needs.
The workers said the store policy was to allow only one person into a fitting room at a time in order to
reduce the risk of shoplifting.
he girls' mother asked for a copy of the policy abercrombie and fitch at the store and repeatedly contacted the retailers
corporate offices in search of more information. When she was denied information she filed a complaint with
the human rights department.
When the human rights department was unable to solve the conflict directly with AF, they sued.
The judge said the store discriminated against the teen by not making reasonable accommodations for her
disability. The judge also said the retailer officials were general assholes when approached about the
incident, didn't follow their own policies, and even denied the girl was disabled.
The retailer must pay more than $155,000, abercrombie and fitch including $25,000 to the teen. AF plans to appeal.
AF was also in the news recently when a former employee said she was forced to work in the backroom because
she had a prosthetic arm that didn't fit their image. The retailer was found to have broken employment law
and had to pay her of unlawful harassment.
2009年9月21日星期一
The cloister angry down a bigotry affirmation that Abercrombie had disputed
Today brought a bifold dosage of bad account for abercrombie and fitch. (ANF). On top of black balance for the additional quarter, the Associated Press letters that a London cloister has ordered the accouterment alternation to pay a disabled agent about $15,000 for afflicted animosity and blameworthy dismissal.
The cloister angry down a bigotry affirmation that abercrombie and fitch had disputed.
Riam Dean, a 22-year-old university student, had complained that her administration would not let her abrasion a sweater to awning her prosthetic arm and approved to about-face her off the boutique floor. Dean's clothing claimed that she was told she didn't fit in with the "look policy" at the chain's abundance on Savile Row in axial Londo abercrombie and fitch has run into agitation in the accomplished for putting appearance aboriginal if hiring. Five years ago, it acclimatized several application bigotry apparel in the U.S.
And the hits kept coming. This morning, abercrombie and fitch acquaint black second-quarter balance -- a net accident of $19.8 million, due to $24.4 actor in accuse from closing down the Ruehl chain.
The company's same-store sales down 30 percent, to $648.5 million, over the additional division of 2008. Sales at the abercrombie and fitch food were down 27 percent, and same-store sales at Hollister were down 31 percent. Back-to-school is axis into a dejected time.
The cloister angry down a bigotry affirmation that abercrombie and fitch had disputed.
Riam Dean, a 22-year-old university student, had complained that her administration would not let her abrasion a sweater to awning her prosthetic arm and approved to about-face her off the boutique floor. Dean's clothing claimed that she was told she didn't fit in with the "look policy" at the chain's abundance on Savile Row in axial Londo abercrombie and fitch has run into agitation in the accomplished for putting appearance aboriginal if hiring. Five years ago, it acclimatized several application bigotry apparel in the U.S.
And the hits kept coming. This morning, abercrombie and fitch acquaint black second-quarter balance -- a net accident of $19.8 million, due to $24.4 actor in accuse from closing down the Ruehl chain.
The company's same-store sales down 30 percent, to $648.5 million, over the additional division of 2008. Sales at the abercrombie and fitch food were down 27 percent, and same-store sales at Hollister were down 31 percent. Back-to-school is axis into a dejected time.
2009年9月20日星期日
Foundation,abercrombie
The company was originally established as abercrombie and fitch. by David Abercrombie on June 4, 1892, as a small waterfront shop at No.36 South Street in downtown Manhattan, New York. Wealthy New York lawyer Ezra Fitch became one of the store's regular customers. In 1900, Fitch left his law practice and bought a major share into the growing Abercrombie company and thus joined as co-founder. abercrombie and fitch. later moved into larger quarters at 314 Broadway, and Fitch began to implement experimental ideas to renovate the store. In 1904, Fitch's surname was incorporated and so the official name was changed to abercrombie and fitch..
Partnership between the founders did not end well. The two men, envisioning different ideas for the future of abercrombie and fitch , quarreled frequently while the company continued to prosper. Fitch wished to expand the company's appeal to the general public, whereas abercrombie and fitch wanted to continue selling professional gear to professional outdoorsmen. As a result, Abercrombie sold his share in the company to Fitch in 1907 and returned to manufacturing outdoor goods.Fitch continued the business with other partners and directed the company as he pleased.
Partnership between the founders did not end well. The two men, envisioning different ideas for the future of abercrombie and fitch , quarreled frequently while the company continued to prosper. Fitch wished to expand the company's appeal to the general public, whereas abercrombie and fitch wanted to continue selling professional gear to professional outdoorsmen. As a result, Abercrombie sold his share in the company to Fitch in 1907 and returned to manufacturing outdoor goods.Fitch continued the business with other partners and directed the company as he pleased.
2009年9月18日星期五
Arrogance Isn’t Working for Abercrombie & Fitch
The teen retailer, abercrombie and fitch , frequented by preppy and status-conscious kids, has gone out of style. No matter how much it believed—and banked on—that kids would never, ever, ever abandon its stores filled with sexy clothes and half naked men, they did, and in record numbers.
It tried to ride out the recession maintaining its high prices, an arrogant mindset that turned off its customers. Most other marketers were listening to customers and acting accordingly, some by lowering prices, others by adding value, offering money saving options and suggestions or reworking messaging to relay compassion to worried, cash-strapped customers.
abercrombie and fitch has crash-landed and is now trying to play catch up by lowering prices and introducing fashion trends it missed, like dresses. The company reported a second-quarter loss last week of $26.7 million, its third consecutive quarter showing double-digit sales declines. Sales dropped 23% to $648.5 million. Direct-to-consumer sales dropped 13% to $48.7 million. Employees are getting pink slips and the doors are being boarded up on its even higher-priced Ruehl chain.
CEO Mike Jeffries said, “We continued to be confronted with very challenging conditions during the second quarter. We believe we are doing the right things to address those challenges and improve our domestic business.”
Is it too late?
Many Abercrombie shoppers have turned their attention to Aeropostale and American Eagle Outfitters, two of the companies sweeping up the broken bits left by abercrombie and fitch bad decisions.
Even if kids still want to shop at its stores, parents are saying no. The glimmer of hope abercrombie and fitch may have seen of late—rising stocks and consumer confidence—has all but disappeared as stocks have slumped again on worries that consumers are still clinging to their wallets.
abercrombie and fitch recent financial report also suggested it has cut its marketing budget. Another bad move at a time when it should be letting its customers know it has finally come to its senses.
It tried to ride out the recession maintaining its high prices, an arrogant mindset that turned off its customers. Most other marketers were listening to customers and acting accordingly, some by lowering prices, others by adding value, offering money saving options and suggestions or reworking messaging to relay compassion to worried, cash-strapped customers.
abercrombie and fitch has crash-landed and is now trying to play catch up by lowering prices and introducing fashion trends it missed, like dresses. The company reported a second-quarter loss last week of $26.7 million, its third consecutive quarter showing double-digit sales declines. Sales dropped 23% to $648.5 million. Direct-to-consumer sales dropped 13% to $48.7 million. Employees are getting pink slips and the doors are being boarded up on its even higher-priced Ruehl chain.
CEO Mike Jeffries said, “We continued to be confronted with very challenging conditions during the second quarter. We believe we are doing the right things to address those challenges and improve our domestic business.”
Is it too late?
Many Abercrombie shoppers have turned their attention to Aeropostale and American Eagle Outfitters, two of the companies sweeping up the broken bits left by abercrombie and fitch bad decisions.
Even if kids still want to shop at its stores, parents are saying no. The glimmer of hope abercrombie and fitch may have seen of late—rising stocks and consumer confidence—has all but disappeared as stocks have slumped again on worries that consumers are still clinging to their wallets.
abercrombie and fitch recent financial report also suggested it has cut its marketing budget. Another bad move at a time when it should be letting its customers know it has finally come to its senses.
2009年9月17日星期四
Abercrombie Doesn't Change
In this retail environment, where consumers selectively scour for bargains, it is tempting for retailers to reduce prices in order to drive sales and reduce inventory. One company bucking this trend is cheap abercrombie and fitch (ANF), whose stated number one priority through this downturn is to "protect the brands". By holding prices steady while competitors discount, management hopes cheap Ambercrombie emerges from the recession as a superior brand that consumers are willing to pay a premium for.
Is this a good strategy? Only time will tell. In a sense, however, it is a riskier strategy, as short-term earnings are sacrificed in exchange for a future benefit of uncertain magnitude. Same-store sales are down a staggering 30% year abercrombie and fitch over year, as consumer preferences have shifted towards cheaper brands. Despite the large sales drop, inventories are running some 15% above what they were at this time last year, which is undoubtedly contributing to the fact that the company has had to increase its debt load from $43 million one year ago to its current level of $157 million.
But the company appears poised to be able to weather the economic storm. cheap abercrombie and fitch is still profitable despite the huge drop in sales thanks to its massive gross margins: buying apparel items manufactured in Asia and South America and selling them in North America for many times their cost has proven very fruitful for many companies which appeal to the fashion-conscious, and that's not likely to change.
There are risks to be aware of, however. If the recession deepens, abercrombie and fitch wholesale cost structure could prove inflexible. While we have seen that evenhealthy retailers have been able to renegotiate their leases lower, the sheer magnitude of ANF's future lease obligations ($2.8 billion, larger than the company's market cap!) cannot be ignored. Nevertheless, the company does have abercrombie and fitch room to reduce prices and increase short-term profits should this happen.
Is this a good strategy? Only time will tell. In a sense, however, it is a riskier strategy, as short-term earnings are sacrificed in exchange for a future benefit of uncertain magnitude. Same-store sales are down a staggering 30% year abercrombie and fitch over year, as consumer preferences have shifted towards cheaper brands. Despite the large sales drop, inventories are running some 15% above what they were at this time last year, which is undoubtedly contributing to the fact that the company has had to increase its debt load from $43 million one year ago to its current level of $157 million.
But the company appears poised to be able to weather the economic storm. cheap abercrombie and fitch is still profitable despite the huge drop in sales thanks to its massive gross margins: buying apparel items manufactured in Asia and South America and selling them in North America for many times their cost has proven very fruitful for many companies which appeal to the fashion-conscious, and that's not likely to change.
There are risks to be aware of, however. If the recession deepens, abercrombie and fitch wholesale cost structure could prove inflexible. While we have seen that evenhealthy retailers have been able to renegotiate their leases lower, the sheer magnitude of ANF's future lease obligations ($2.8 billion, larger than the company's market cap!) cannot be ignored. Nevertheless, the company does have abercrombie and fitch room to reduce prices and increase short-term profits should this happen.
2009年9月16日星期三
Law Student, Prosthetic Arm, Abercrombie & Fitch
We figured those three phrases alone would be enough to get you to to sit up and take notice. A law student with a prosthetic arm has won her suit for wrongful dismissal against U.S. clothing retailer abercrombie and fitch after she was ordered to work in the stockroom. Click here for the AP story.
The woman, Riam Dean (pictured), had alleged that she was removed from a London branch’s sales floor because the cardigan she wore to cover her missing left forearm violated abercrombie and fitch strict dress code. The 22-year-old testified that her manager taunted her about her disability. Ohio-based Abercrombie denied this.
A London employment trial ordered abercrombie and fitch
to pay Dean about $15,000 in compensation for injured feelings, lost earnings and wrongful dismissal.
According to Dean, she was asked by a company employee if it would be possible “to keep you in the stockroom until the winter uniform arrives.” Dean then received letter saying she had been “erroneously placed on the shop floor.”
The woman, Riam Dean (pictured), had alleged that she was removed from a London branch’s sales floor because the cardigan she wore to cover her missing left forearm violated abercrombie and fitch strict dress code. The 22-year-old testified that her manager taunted her about her disability. Ohio-based Abercrombie denied this.
A London employment trial ordered abercrombie and fitch
to pay Dean about $15,000 in compensation for injured feelings, lost earnings and wrongful dismissal.
According to Dean, she was asked by a company employee if it would be possible “to keep you in the stockroom until the winter uniform arrives.” Dean then received letter saying she had been “erroneously placed on the shop floor.”
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