Financial analysis

Céline De Temmerman 2 AT 3

Abercrombie & Fitch

Profile

Financial analyses• Q4- summary

Reasons

Conclusion

Abercrombie & Fitch

ABERCROMBIE & FITCH

Founded 1892

The founders David T. Abercrombie and Ezra H.

Fitch

Sector Clothing and accessoires stores

Stores Total: 1,069

(US, Canada, Asia, Europe)

Headquarters New Albany, Ohio

Net sales 2010 $ 3.47 Billion

E-commerce sales 2010 $ 392.5 Million

Net income 2010 $ 150.3 Million

Employees 2010 85,000

Abercrombie & Fitch

Source: http://retailsails.com/monthly-sales-summary/anf/

Abercrombie & Fitch

Gross margin Q4

(1000’s) Gross Porfit Gross margin

Q4 – 2010 $ 730,986 63,6 %

Q4 – 2009 $ 594,542 63,5%

Operating margin Q4

(1000’s) Oper Porfit Oper margin

Q4 – 2010 $ 144,706 12.6%

Q4 – 2009 $ 95,437 10.2%

Q4 – summary

Abercrombie & Fitch

Q4 – 2010 Q4 – 2009

Profit (Net income) $ 92,6 $ 47,50

Net sales $ 1,149,396 $ 935,991

Gross profit 63,6% 63,5%

Operating profit 12.6% 10.2%

Cut prices

Aggresive promotions

Direct-to-consumer sales

Shares: • Q4 - 2010: Earnings of $ 1,32 per share on

revenue of $ 1,14 billion

• Q4 – 2009: Earnings of $ 0,91 per share on

revenue of $ 935,99 million

Abercrombie & Fitch

Abercrombie & Fitch

CEO Mike Jeffries said :

“We are very pleased with our fourth quarter results. We

finished the year with strong domestic sales growth and

continued to see very strong results in Europe. 2010

was a year in which we exceeded our objectives in

terms of sales, operating income and earnings per

share”

Abercrombie & Fitch