Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
Apparel retailer $ANF said Arthur Martinez has decided to step down as Executive Chairman of its BoD next month. On Martinez’ retirement, Terry Burman - currently Lead Independent Director - will assume the role of Non-Executive Chairman. Martinez has been serving as Executive Chairman of the company since December 2014.
$ANF said its earnings rose to $10.1MM, or 15 cents per share in 3Q17, from $7.9MM, or 12 cents per share in the same quarter last year. Excluding certain one-off items, the fashion retailer earned 30 cents per share during the quarter, a jump from 2 cents per share in the year-over period.
Fashion retailer $ANF reported 5% growth in overall net sales to $859.1MM in 3Q17, as comparable sales saw a positive growth for the first time this fiscal year. Comparable sales for the quarter rose 4%, riding on strong growth in its Hollister brand.
$ANF appointed Scott Lipesky as SVP and CFO, effective Oct 2, 2017. He will serve on its executive leadership team and report to EVP and COO Joanne Crevoiserat, who continued to serve as CFO after her promotion as COO, effective Feb 1, 2017. Lipesky was the CFO of American Signature.
Specialty apparel retailer $ANF has joined hands with Middle East-based retail group Majid Al Futtaim to open its first store in Jeddah, Saudi Arabia. The initiative is part of an agreement signed between Abercrombie and Al Futtaim in 2016. The new store will offer fall/winter collections for men, women, and children.
$ANF has terminated discussions regarding a potential buyout. The company reported on May 10, 2017 that, after receiving expressions of interest, it had commenced preliminary discussions with several parties regarding a potential transaction. Following the news, $ANF shares plunged 11% in pre-market trade to a three-month low.
During 1Q17, $ANF’s comparable sales were down 3% for the US and down 2% in international markets. Comparable sales were up 3% for the Hollister brand and down 10% for the Abercrombie brand. Hollister delivered positive comp sales in both US and international markets. $ANF’s gross margin for 1Q17 was 60.3%.
In 1Q17, $ANF saw double digit growth in denim and outerwear and its emerging growth categories more than doubled. In the Abercrombie brand, the company saw its core focus categories increase as a percentage of total sales with positive comps in sweaters and pants across genders.
For FY17, $ANF plans to open seven full-price stores, primarily in the U.S. The company also plans to open two new outlet stores. In addition, the company anticipates closing approx. 60 stores in the U.S. through natural lease expirations.
For FY17, $ANF expects net income attributable to noncontrolling interests of approx. $4MM. Comparable sales is expected to remain challenging in 2Q17. The company expects continued adverse impact from foreign currency on sales and operating income.
During 1Q17, $ANF's net sales of its brand Hollister rose 3% YoY to $374.7MM. Net sales for Abercrombie fell 11% YoY to $286.4MM during the quarter. Direct-to-consumer sales grew approx. 27% of the total net sales during the quarter, compared to 24% during prior year quarter.
Teen retailer $ANF's 1Q17 net loss widened to $61.7MM, or $0.91 per share, from net loss of $39.5MM, or $0.59 per share during 1Q16. The results included non-cash income tax charge of $0.14 per diluted share related to a change in share-based compensation accounting standards. Net fell 4% YoY to $661.1MM, with comparable sales down 3%.
$ANF reported, that after receiving expressions of interest, it is in preliminary discussions with many parties regarding a potential transaction with the company. However, there can be no assurance these discussions will lead to a definitive agreement. $ANF does not intend to make any further comments on the discussions until they are concluded.