Abercrombie & Fitch Q2 net sales up by 4 percent

Abercrombie & Fitch based in New Albany, Ohio, declared its net sales increased by 4 percent to 951.4 million dollars for the quarter ended July 28, 2012, compared to net sales of 916.8 million dollars for the same period last year. But total US sales, including direct-to-consumer sales, decreased by 5 percent to 648.0 million dollars. The international sales, including direct-to-consumer sales, increased by 31 percent to 303.4 million dollars. Total company direct-to-consumer sales, including shipping and handling, increased by 25 percent to 127.7 million dollars.

Comparable store sales for the quarter were down by 10 percent, relative to last year. Comparable store sales were down by 5 percent in US stores and were down by 26 percent in international stores. Within the quarter, comparable store sales were the weakest in June.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said, "Macroeconomic conditions remained very challenging during the quarter, particularly in Europe but also increasingly in the US. In that context, we will continue to be highly disciplined in our new store approval process and only commit to the stores where we are confident that are likely to generate a stronger return than alternative uses of cash. We believe this has clearly been the case for the international investments we have made to date, as our international stores remain much more productive and much more profitable than our US fleet. However, given recent trends, particularly in Europe, we believe it is appropriate to revise our plans in response. Moreover, we believe our iconic brands, strong financial position, and strong cash flow will enable us to continue to invest in profitable international expansion while returning cash to stockholders through dividends and a disciplined share repurchase program."