Abercrombie & Fitch Announces Management Changes; Company Reports August Net Sales Increase 36%, Comparable Store Sales Increase 24%, Reaffirms Outlook For Fiscal Year
Abercrombie & Fitch Co. today announced that Robert S. Singer, President and Chief Operating Officer, will be leaving the Company effective August 31, 2005.
Chairman and Chief Executive Officer Mike Jeffries stated, “We appreciate the significant contributions Bob made during his fifteen months with us. He helped the Company focus on many important areas of our business, and we believe that his accomplishments will make the transition in leadership quite smooth. However, there was a difference in approach to the timing and extent of our expansion into certain international markets. While we are solidifying our plans to expand into Canada and the United Kingdom, our entry into other foreign markets will be at a more deliberate pace.
“Bob's duties will be assumed by two of our current senior managers, John Lough, Executive Vice President of Logistics and Store Operations, and Mike Kramer, our CFO, who will take on the financial aspects of the COO's position.”
“My time with Abercrombie & Fitch has been an extraordinary experience. I will miss the many wonderful and talented people here, and wish them the greatest future success,” said Mr. Singer.
The Company also announced that it has retained Egon Zehnder to locate a President and Chief Operating Officer.
Abercrombie & Fitch Co. also today reported net sales of $287.4 million for the four-week period ended August 27, 2005, a 36% increase over last year's August sales of $212.1 million. August comparable store sales increased 24% compared with the four-week period ended August 28, 2004.
Year-to-date, the Company reported a net sales increase of 37% to $1.406 billion from $1.025 billion last year. Comparable store sales increased 24% for the year-to-date period.
August 2005 Highlights
Total Company net sales increased 36%
Total Company comparable store sales increased 24%
Abercrombie & Fitch comparable store sales increased 13%
abercrombie comparable store sales increased 56%
Hollister Co. comparable store sales increased 29%
The Company said that its August sales, which historically represent the most important month of the back-to-school season, were exceptionally strong. The business maintained excellent momentum during the month, achieving strong comparable store sales increases in each brand.
The Company reaffirmed its recently increased guidance for the year of net income per fully-diluted share to be in the range of $3.10 to $3.30, based on a sales plan of approximately $2.7 billion for fiscal 2005, excluding a one- time charge to be taken in the third quarter for Mr. Singer's severance package.
The Company operated 353 Abercrombie & Fitch stores, 164 abercrombie stores, 284 Hollister Co. stores and six RUEHL stores at the end of fiscal August. The Company operates e-commerce websites at http://www.abercrombie.com, http://www.abercrombiekids.com, and http://www.hollisterco.com.