Abercrombie & Fitch swings to profit, to close 60 stores
New Albany, Ohio Abercrombie & Fitch Co. reported Tuesday that it swung to a profit in the second quarter as lowered prices bolstered sales. The teen retailer recorded net income of $19.5 million, compared with a loss of $26.7 million in the year-ago quarter.
Abercrombie also said Tuesday it will close 60 stores in the United States in 2010 as it expands internationally.
Revenue rose 17% to $745.8 million, surpassing Wall Street expectations of $727.7 million.
Same-store sales rose 5%.
In the United States, the retailer said it plans to open three Abercrombie & Fitch stores; three Abercrombie Kids stores; three Hollister stores; two Gilly Hicks stores; and five outlet stores. The 60 closures will occur mainly through lease expirations, the company said.
Internationally, Abercrombie said it plans to open namesake stores in Copenhagen, Denmark, and Fukuoka, Japan, and will open 20 international mall-based Hollister stores, down from prior guidance of 25 stores.
In the fourth quarter, it will open a new namesake store in Canada and its first international Gilly Hicks store in the United Kingdom.