Abercrombie & Fitch Co. (NYSE:ANF) today announced results for the first quarter
The company, based in New Albany, Ohio, declared net sales increased to $734.0 million, including the adverse impact from changes in foreign currency exchange rates of approximately $16 million or 2%.
Positive comparable sales were 1%, on top of 5% last year. Gross profit rate of 60.5%, which were flat to last year.
Operating expense, excluding other operating income was $472.0 million leveraged 230 basis points on a GAAP basis and 160 basis points on an adjusted non-GAAP basis.
Operating loss was $27.3 million. Operating loss margin improved 210 basis points from last year to 3.7%. Excluding certain items, adjusted non-GAAP operating loss margin improved 130 basis points from last year.
Net loss per diluted share was $0.29 compared to $0.62 last year and was adversely impacted by year-over-year changes in foreign currency exchange rates, net of hedging, of approximately $0.02. Excluding certain items, adjusted non-GAAP net loss per diluted share last year was $0.56.
For the end of the fiscal, net sales to be up in the range of 2% to 4%, driven by positive comparable sales and net new store contribution, partially offset by an adverse impact from changes in foreign currency exchange rates of approximately $30 million of which approximately $16 million was reflected in first quarter results.
Comparable sales are expected be up low-single digits, on top of 3% last year.
Fran Horowitz, Chief Executive Officer, said, "We achieved our seventh consecutive quarter of positive comparable sales fueled by ongoing strength at Hollister and a return to positive comps at Abercrombie.
"This contributed to top-line growth, operating margin improvement and a net loss reduction compared to last year."
Shares collapsed $6.04, or 24.2%, to $18.97
