Abercrombie reports increased Q1 direct sales
Apparel retailer Abercrombie & Fitch saw overall sales growth and increased direct-to-consumer sales in its fiscal first quarter of 2010. However, the company also reported a net loss of $11.8 million during the quarter, which ended May 1.
Net sales for the first quarter increased 14% year-over-year to $687.8 million. Direct-to-consumer merchandise sales jumped 42% to $68.8 million. However, store sales were slow, inching up 1%.
The company's “10% decrease in average unit retail” was also cited as a factor contributing to its decrease in gross profit year-over-year.
Mike Jeffries, CEO and chairman of the board of Abercrombie & Fitch, said in a statement that the company is “pleased with our overall reported sales growth of 14% for the quarter.”
“We continue to be very focused on achieving sustainable, profitable growth in both our domestic and international businesses,” he said.