WASHINGTON (dpa-AFX) - Abercrombie & Fitch Co. (ANF) reported Tuesday a wider year-over-year net loss for the second-quarter, hurt by a impairment charge. Net sales for the quarter were down 4%, with comparable sales declined 4%.
Quarterly loss was wider than their expectations, but revenues beat their' estimates.
In the pre-market, ANF is currently trading at $19.90, down $3.05 or 13.29%
For fiscal 2016, the company now expects net income attributable to noncontrolling interests of approximately $5 million; comparable sales to remain challenging through the second half of the year, with a disproportionate effect from flagship and tourist locations.
The company expects capital expenditures to be at the low end of the range of $150 million to $175 million for the full year. The company plans to open approximately 15 new stores in fiscal 2016, including approximately 10 in international markets, primarily China, and approximately five in the U.S. The company plans to open six new outlet stores, primarily in the U.S. In addition, the company anticipates closing up to 60 stores in the U.S. during the fiscal year through natural lease expirations.
Net loss attributable to the company for the second quarter widened to $13.13 million or $0.19 per share from $0.8 million or $0.01 per share last year.
Excluding certain items, adjusted non-GAAP net loss attributable to the company. for the second quarter was $16.8 million or $0.25 per share, compared to adjusted non-GAAP net income of $8.6 million or $0.12 per share last year. The results for the quarter reflect an adverse impact related to year-over-year changes in foreign currency exchange rates of approximately $0.08 per share. Analysts polled by Thomson Reuters expected the company to report a loss of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Asset impairment charges of $6.4 million for the second quarter were excluded from adjusted results.
Net sales for the second quarter of $783.2 million were down 4% versus last year, with comparable sales for the second quarter down 4%. Wall Street expected revenues of $782.71 million for the quarter.
By brand, net sales for the second quarter decreased 5% to $363.1 million for Abercrombie and decreased 4% to $420.1 million for Hollister versus last year. By geography, net sales for the second quarter decreased 7% to $478.8 million in the U.S. and were approximately flat at $304.4 million in international markets versus last year.
Direct-to-consumer sales grew to approximately 23% of total company net sales for the second quarter, compared to approximately 21% of total company net sales last year.
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