Abercrombie & Fitch Co. (ANF) saw its loss widen to $61.70 million, or $0.91 a share for the quarter ended Apr. 29, 2017. In the previous year period, the company reported a loss of $39.59 million, or $0.59 a share.
Revenue during the quarter dropped 3.56 percent to $661.10 million from $685.48 million in the previous year period. Gross margin for the quarter contracted 176 basis points over the previous year period to 60.34 percent. Operating margin for the quarter stood at negative 10.58 percent as compared to a negative 8.01 percent for the previous year period.
Operating loss for the quarter was $69.94 million, compared with an operating loss of $54.91 million in the previous year period.
Fran Horowitz, chief executive officer, said: "We are encouraged by our progress across all brands, particularly in March and April as a whole, in an aggressively promotional environment. We are pleased with the performance of our largest brand, Hollister, as our strategic initiatives continue to deliver. Abercrombie comparable sales were in line with our expectations as we continue to apply the learnings from Hollister's successes. Our focus on closeness to our customers enables us to adapt and execute better and faster, ensuring more consistent delivery of the right product at the right time, with the right brand voice, and through the right brand experience. While we anticipate the second quarter environment to remain promotional, we expect results to improve further in the second half of the year, as we see returns from our strategic investments in marketing and omnichannel. We continue to tightly manage costs and inventory, and focus on execution to position our business for sustainable growth."
Working capital declines
Abercrombie & Fitch Co. has witnessed a decline in the working capital over the last year. It stood at $580.87 million as at Apr. 29, 2017, down 5.84 percent or $36.01 million from $616.88 million on Apr. 30, 2016. Current ratio was at 2.38 as on Apr. 29, 2017, up from 2.29 on Apr. 30, 2016.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 101 days for the last year period. Days sales outstanding went up to 10 days for the quarter compared with 8 days for the same period last year.
Days inventory outstanding has decreased to 69 days for the quarter compared with 153 days for the previous year period. At the same time, days payable outstanding went down to 58 days for the quarter from 60 for the same period last year.
Debt comes down
Abercrombie & Fitch Co. has recorded a decline in total debt over the last one year. It stood at $263.35 million as on Apr. 29, 2017, down 8.12 percent or $23.26 million from $286.62 million on Apr. 30, 2016. Total debt was 12.20 percent of total assets as on Apr. 29, 2017, compared with 12.23 percent on Apr. 30, 2016. Debt to equity ratio was almost stable at 0.22 as on Apr. 29, 2017, when compared with the last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
