Abercrombie and Fitch Co. (NYSE: ANF) shares jumped in early trading before settling down to its opening levels after the company released missed estimates. The high-end clothing manufacturer may not have hit targets, but it did show improved top and bottom line performance during its first quarter. The conflicted data ended up evening out the stock today.
Abercrombie said it earned $62.1 million, or 69 cents per share, in the first quarter. This was on a three percent increase in same-store sales but a drop in receipts for all other company nameplates. The company said that it plans to trim its expansion plans domestically in order to cut costs during the down economy.
Currently, Abercrombie runs 353 flagship stores and 687 others under various nameplates. It expects to open up 104 new stores as a result of its planned expansion. Currently, its revenues stand at $3.75 billion with $475.7 million in profits. The company is hoping that European operations next year along with new stores in the UK will boost sales and increase profitability.
Shares of Abercrombie & Fitch Co. rose $0.06, or 0.08%, on the earnings news.
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