Apparel retailers Abercrombie & Fitch (ANF), American Eagle Outfitters Inc. (AEO), Gap Inc. (GPS), Aeropostale (ARO) and Cato Corp. (CATO) Thursday announced their sales results for the month of January. All of them, except Cato have recorded higher comparable store sales for the month. American Eagle and Aeropostale revised their earnings forecast for the fourth quarter, and Gap sees about 50% year-over-year rise in its earnings for the quarter. Meanwhile, Cato confirmed its fourth-quarter and fiscal 2009 earnings outlook.
Abercrombie & Fitch
Abercrombie & Fitch's January comparable store sales increased 8%. Segment wise, Abercrombie & Fitch comparable store sales were up 12% and abercrombie kids comparable store sales increased 10%. Hollister Co. posted comparable store sales growth of 5%, while Ruehl comparable store sales decreased 47%.
For the four-week period ended January 30, the company's net sales were $222.8 million, up 16% from $191.5 million a year ago. Total company direct-to-consumer net merchandise sales increased 8% to $28.0 million for the month.
Abercrombie & Fitch said it completed the closure of its Ruehl branded stores and related direct-to-consumer operations as of January 30, 2010. January net sales include $1.4 million of net sales for Ruehl, down from $4.4 million in the prior year.
For the fourth quarter, the company's comparable store sales decreased 13%. Net sales declined 5% to $951.0 million from $998.0 million last year. Net sales for the quarter include $14.8 million of net sales for Ruehl, versus $17.1 million in the previous-year quarter. Total company direct-to-consumer net sales were up 1% to $96.4 million for the fourth quarter.
Abercrombie & Fitch is slated to announce its fourth-quarter earnings on February 16. The company continues to anticipate its fiscal year-end review of long-lived, store-related assets will result in a non-cash impairment charge in the fourth quarter.
For fiscal 2009, Abercrombie & Fitch reported a 23% decline in comparable store sales, and net sales dropped 16% to $2.977 billion from $3.540 billion last year. Total company direct-to-consumer net merchandise sales were down 5% to $258.1 million. Reported net sales for the year include $48.2 million of Ruehl net sales, lower than $56.2 million in the prior year.
Abercrombie & Fitch in fiscal November and fiscal December conducted special events in most of its North American stores and direct-to-consumer channels in which complimentary gift cards, redeemable on or before January 30, 2010, were issued to customers who made purchases above defined amounts. At the beginning of the fiscal month, the value of complimentary gift cards issued but not redeemed was approximately $22 million, substantially all of which has been recognized in sales in January.
Gap Inc. (GPS)
The company's comparable store sales for the month of January were up 5%, compared with a 23% decrease in January 2009.
Gap North America's comparable store sales were positive 2% versus negative 18% last year. Banana Republic North America reported a 4% rise in comparable store sales, compared with a 22% decline last year. Further, Old Navy North America reported a 10% rise in comparable store sales versus a 34% decline in the prior-year month. International comparable store sales rose 3%, in comparison with flat sales in the year-ago month.
Commenting on the sales, Sabrina Simmons, chief financial officer of Gap Inc., stated, "We're pleased that we grew comparable sales at all of our brands in January while delivering merchandise margins significantly above last year. This is evidence that our strategy to improve our top line is gaining traction."
For the thirteen weeks ended January 30, the company's comparable store sales increased 2% compared with a decrease of 14% in the fourth quarter of last year. Total company net sales were $4.24 billion, up 4% from $4.08 billion a year ago.
For the fourth quarter, Gap sees earnings of $0.49 to $0.51 per share, up about 50% from $0.34 in the fourth quarter last year. This estimate includes about a $0.01 benefit from the Visa/Mastercard settlement the company received in December 2009.
On average, 30 analysts polled by Thomson Reuters expect the company to report earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
For fiscal year 2009, the company's comparable store sales decreased 3% compared with a decrease of 12% for the prior year. Full-year net sales were $14.20 billion, compared with $14.53 billion in the previous year.
Gap will release its fourth-quarter earnings on February 25 and February sales on March 4.
American Eagle Outfitters
The company reported its consolidated comparable store sales for the month of January increased 10%, compared to a 22% decrease for the same period last year. Total sales increased 18% to $163.5 million from $138.9 million in the prior year period.
Comparable store sales increased 5% for the fourth quarter compared to a 16% decrease last year. Total sales for the quarter were up 7% to $972.0 million from $905.7 million in the year ago quarter.
For year fiscal 2009, American Eagle's comparable store sales decreased 4%, compared a 10% decline last year. Total sales increased slightly to $2.991 billion from $2.989 billion last year.
American Eagle also updated its fourth-quarter earnings guidance to a range of $0.32 - $0.33 per share from $0.30 - $0.32 per share projected earlier. The guidance excludes potential investment security or store impairment charges. Analysts currently expect the company to report earnings of $0.32 per share for the quarter.
Aeropostale
Mall fixture Aeropostale announced Thursday its same store sales increased 6% for January, compared to a same store sales increase of 11% in the year ago period. Total January sales increased 15% to $111.2 million from $96.5 million for the four-week period ended January 31, 2009.
The teen clothing retailer stated its gross margins for the month improved over last year, and that its inventories remain well controlled and on plan. The company also made a smooth transition into its new floor set, with the initial customer reaction to its spring merchandise collection being very positive. Based on stronger than expected performance for the month, Aeropostale now expects fourth quarter earnings in the range of approximately $1.41 - $1.42 per share, versus its previously issued guidance range of $1.33 - $1.34 per share. The revised guidance represents a 40% to 41% increase over earnings of $1.01 in the fourth quarter last year.
For the fourth quarter of fiscal 2009, total net sales increased 16% to $799.9 million from $690.0 million in the year ago period. Same store sales for the fourth quarter increased 9%, compared to a same store sales increase of 6% last year.
Year-to-date, total net sales increased 18% to $2.229 billion from $1.886 billion in the year ago period. Same store sales rose 10%, compared to a same store sales increase of 8% last year.
Yesterday, Aeropostale announced a 3-for-2 stock split that will take the form of a stock dividend to be paid on or about March 4.
Cato Corp.
Cato said its same-store sales for the month of January decreased 4% from the prior year. Net sales for the four weeks ended January 30, 2010 were down 1% to $52.1 million from $52.4 million in the prior year period.
"January sales were negatively impacted by winter storms at the end of the month," stated John Cato, Chairman, President, and Chief Executive Officer.
Same-store sales for the fourth quarter increased 2%. Sales for the quarter were $217.7 million, an increase of 4% from $209.1 million in the year-ago period. The company's full-year same-store sales rose 1% and total sales increased 3% to $872.1 million from $845.7 million in the previous year.
Cato said it continues to expect fourth-quarter earnings in the range of $0.20 - $0.22 per share. Full-year earnings are projected to be in the range of $1.51 - $1.53 per share, an increase of 32% to 34%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.