Abercrombie & Fitch Co posts surprise profit on lower costs, online boost
Reuters
Published Aug 27, 2020 07:46AM ET
Updated Aug 27, 2020 08:15AM ET
(Reuters) - Abercrombie & Fitch Co (N:ANF) reported a surprise profit on Thursday as the apparel retailer slashed costs and benefited from a surge in online orders during the COVID-19 pandemic, sending its shares 9% higher in premarket trading.
With customers staying at home due to the health crisis, the company's digital sales soared 56% in the second quarter.
Abercrombie, which has furloughed employees and cut executive pay to reduce costs, said store and distribution expenses were down nearly 18%, while marketing costs fell 16%.
Net income attributable to the company was $5.5 million, or 9 cents per share, compared with a loss of $31.1 million, or 48 cents per share, a year earlier. The year-ago quarter included flagship store exit charges of about $45 million.
Excluding items, the company earned a profit of 23 cents per share in the period, while analysts were expecting a loss of 83 cents per share, according to IBES data from Refinitiv.
Net sales fell to $698.3 million in the quarter ended Aug. 1, but beat estimates of $658.44 million.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.