abercrombie & fitch co-cl a (ANF) Key Developments
Abercrombie & Fitch and Inter Parfums Enter into Seven- Year Exclusive Worldwide Fragrance License Agreement
Dec 16 14
Abercrombie & Fitch and Inter Parfums announced that they have entered into a seven- year exclusive worldwide fragrance license agreement. Under the agreement, Inter Parfums will create, produce and distribute new perfumes and fragrance-related products, including new men's and women's scents planned for both Abercrombie & Fitch and Hollister for 2016. Inter Parfums will distribute these fragrances internationally in specialty retailers, high-end department stores and duty free shops, and in the U.S., in duty free shops and potentially in Abercrombie and Hollister retail stores. Financo, LLC represented Inter Parfums in this transaction.
Abercrombie & Fitch Co. Announces Executive Changes
Dec 9 14
Abercrombie & Fitch Co. announced that Michael Jeffries is retiring as Chief Executive Officer and a member of the Board of Directors, effective immediately. Abercrombie & Fitch's current Non-Executive Chairman of the Board, Arthur Martinez, will become Executive Chairman. The Board has established an Office of the Chairman, consisting of Mr. Martinez, as well as Jonathan Ramsden, Chief Operating Officer, Christos Angelides, Brand President of Abercrombie & Fitch and Fran Horowitz, Brand President of Hollister. The Office of the Chairman, led by Arthur Martinez, will oversee the Company's strategic direction and be responsible for managing the company's day-to-day operations until a new CEO is appointed. Mr. Martinez has served as Non-Executive Chairman of Abercrombie & Fitch since January 2014.
Abercrombie & Fitch Co. Signs Agreement with Grupo AXO to Open New Store in Mexico
Dec 8 14
Abercrombie & Fitch Co. has entered into a franchise agreement with Grupo AXO, to open a retail store in Mexico. The franchise arrangement will encompass both the Abercrombie & Fitch and Hollister brands. The first Hollister store is set to open in late spring 2015 and the first Abercrombie & Fitch store is expected to open in late summer 2015. The company anticipates a continuing rollout that will include stores in cities like Mexico City, Guadalajara, Cancun and Playa Del Carmen.
Abercrombie & Fitch Co. Announces Earnings Results for the Third Quarter of Fiscal 2015; Provides Earnings Guidance for the Fourth Quarter of Fiscal 2015; Revises Earnings Guidance for the Full Year of Fiscal 2015
Dec 3 14
Abercrombie & Fitch Co. announced earnings results for the third quarter ended November 1, 2014. For the quarter, net sales were $911 million, down 12% to last year. Including direct-to-consumer, total comparable sales were down 10%. Sales during the quarter were below expectations, with the comp sales in September and October being significantly weaker than August. On an adjusted non-GAAP basis, operating income was $54 million compared to $60 million a year ago. Adjusted non-GAAP net income per diluted share of $0.42 compared to adjusted non-GAAP net income per diluted share of $0.52 last year. Net income was $18.2 million, or $0.25 per diluted share, up from $15.6 million, or $0.20 per diluted share a year ago.
The company provided earnings guidance for the full year of fiscal 2015. The company expects full year non-GAAP adjusted diluted earnings per share in the range of $1.50 to $1.65 well below its late August forecast for $2.15 to $2.35. The guidance assumes a full year effective tax rate in the upper 30s, which reflects a lower proportion of earnings being generated in international operations than previously expected.
The company announced that its latest guidance for the full year is based on the assumption that fourth quarter of 2015 comparable sales will be down by a mid-to-high single-digit percentage. The latest guidance also assumes a gross margin rate for the fourth quarter higher than last year, but lower than the third quarter year-to-date rate.
Abercrombie & Fitch Co. Enters into a Franchise Agreement with Grupo AXO to Establish A Retail Store Presence in Mexico
Nov 21 14
Abercrombie & Fitch Co. announced that it has entered into a franchise agreement with Grupo AXO to establish a retail store presence in Mexico. The franchise arrangement, the first in the company's history, will encompass both the Abercrombie & Fitch and Hollister brands. The first Hollister store is set to open in late spring 2015 and the first Abercrombie & Fitch store is expected to open in late summer 2015. The company anticipates a continuing rollout that will include stores in cities like Mexico City, Guadalajara, Cancun and Playa Del Carmen.