Abercrombie & Fitch has seen its net profit drop an astonishing 58 % in its fiscal year’s fourth quarter, despite the fashion label still managing to get a higher-than-expected adjusted profit.
A&F turnover on the slide
Abercrombie & Fitch has acquired a 66.1 million dollars profit (48.1 million euro) in its fourth quarter, ending on 1 February: that is 58 % less than a year earlier, when net profit reached 157.2 million dollars (114.4 million euro). If one-time charges are excluded, the profit was still higher than what analysts had expected.
The quarter’s turnover dropped 12 % to 1.3 billion dollars (946 million euro), while analysts had expected a 1.35 billion dollars (983 million euro) turnover in Abercrombie & Fitch’s fourth quarter. For the full year, the fashion label reached a 54.6 million dollars net profit (39.8 million euro), 80 % less than the year before. Full-year turnover also dropped 9 %, from 4.51 billion dollars (3.29 billion euro) to 4.12 billion dollars (3 billion euro).