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Abercrombie & Fitch profit rises

November 22, 2007|From Bloomberg News

Abercrombie & Fitch Co., a retailer of clothes for teens and college students, said Wednesday that third-quarter profit rose on higher sales at its Hollister Co. and children's chains.

Net income increased to $117.6 million, or $1.29 a share, from $102 million, or $1.11, a year earlier, the New Albany, Ohio-based company said. Profit beat analysts' estimates by 1 cent. But Abercrombie's fourth-quarter forecast may be lower than some analyst estimates.

All of Abercrombie's divisions posted sales gains of at least 10%, with Hollister and the Abercrombie children's chain outpacing the namesake Abercrombie & Fitch division. The company said it was "well-positioned for success" this holiday season, although retailers including J.C. Penney Co. and Macy's Inc. have lowered forecasts.

"They're not immune to a slowdown in consumer spending, but I think they're much better positioned than other retailers heading into the holiday season," said Steven Baumgarten, an analyst at PNC Wealth Management in Philadelphia.

The retailer reiterated its profit forecast of $3.63 to $3.67 a share for the second half of 2007.

Shares rose $1.99 to $74.77.

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