Abercrombie & Fitch Co. reported preliminary unaudited fourth quarter and fiscal year ended February 2, 2013 results
Fiscal Year 2012 Summary
Net sales for the fifty-three weeks ended February 2, 2013 increased 8% to $4.511 billion from $4.158 billion for the fifty-two weeks ended January 28, 2012. Total U.S. sales, including direct-to-consumer sales, decreased 1% to $3.087 billion. Total international sales, including direct-to-consumer sales, increased 36% to $1.424 billion. Total Company direct-to-consumer sales, including shipping and handling, increased 27% to $700.7 million.
The Fiscal 2012 retail year includes a fifty-third week and therefore Fiscal 2012 comparable sales are compared to the fifty-three week period ended February 4, 2012. The fifty-third week added approximately $62.8 million of sales to the comparable base, being sales for the week ended February 4, 2012. Total comparable sales for the year, including direct to consumer sales, decreased 1% with comparable store sales decreasing 5% and comparable direct to consumer sales increasing by 24% relative to last year.
Comparable sales for the full year increased 1% for the U.S., with comparable store sales decreasing by 1% and comparable direct to consumer sales up 15%. Comparable sales for the full year decreased 8% for international, with comparable store sales decreasing by 19% and comparable direct to consumer sales up 46%.
For Fiscal 2012, comparable sales by brand, including direct to consumer sales, decreased 3% for Abercrombie & Fitch, were flat for abercrombie kids, and decreased 1% for Hollister Co. Total sales by brand for Fiscal 2012 were $1.704 billion for Abercrombie & Fitch, $382.5 million for abercrombie kids and $2.314 billion for Hollister Co.
The gross profit rate under the retail method for the fiscal year was 63.4%, 280 basis points higher than last year's gross profit rate. The increase in the gross profit rate was primarily driven by a decrease in average unit cost and the effect of higher markdowns on carryover inventory in the prior year. The gross profit rate under the cost method for the fiscal year was 62.4%, 110 basis points higher than last year's restated gross profit rate. The increase in the gross profit rate was primarily driven by a decrease in average unit cost.
Stores and distribution expense for the fiscal year was $1.988 billion, or 44.1% of net sales. Stores and distribution expense for the full year included charges for impairments of $7.4 million.
Excluding the effect of these charges, the stores and distribution expense rate was 43.9% for Fiscal 2012 compared to 43.0% last year excluding store-related asset impairment and asset write-down charges and store closure and lease exit charges.The increase in the stores and distribution expense rate was primarily the result of deleveraging on negative comparable store sales plus higher direct to consumer expense.
