Abercrombie, Nordstrom Sales Spring to Life While RedEnvelope Posts a Net Loss

Share this content:
Spring sales were rosy for several multichannel retailers reporting results yesterday.

Abercrombie & Fitch Co., New Albany, OH, said its operating income totaled $68.3 million in the first quarter ended April 30, a 46 percent gain over last year's results.

The multichannel apparel marketer said net sales increased 33 percent, totaling $546.8 million, while same-store sales rose 19 percent. Also, direct-to-consumer sales, excluding shipping and handling revenue, increased 19 percent versus last year. International DTC sales rose 20 percent.

Abercrombie's first-quarter gross margin rate was 65.3 percent, up 30 basis points compared with last year.

RedEnvelope Inc., San Francisco, generated net revenue in the fourth quarter of its fiscal year ended April 3 that reached $22.2 million, a 28 percent increase from last year. However, the company posted a net loss for the quarter of $3.8 million compared with a net loss of $2.3 million for the same period last year.

Also, the online upscale gift retailer said its gross margin was 44 percent, approximately 9 points lower than the same period last year.

The company's year-end results, also reported yesterday, were somewhat better. Net revenue for the fiscal year ended April 3 totaled $101.4 million, a 28 percent gain over the previous year. However, the company posted a net loss of $5.9 million compared with a net loss of $5.1 million in fiscal year 2004.

In fiscal 2005, RedEnvelope "refreshed much of the product line with proprietary designs, updated its brand image, improved the accuracy of its fulfillment operations, established a sourcing department, enhanced its customer service and dealt with an expensive and distracting proxy fight," RedEnvelope president/CEO Alison May said in a statement.

At the end of the fiscal year, RedEnvelope's customer file totaled about 2.3 million names, representing growth of about 560,000 names for the 12-month period.

Also reporting results yesterday was Nordstrom Inc., Seattle, which said sales for its first quarter ended April 30 increased 7.7 percent to $1.7 billion. Same-store sales increased 6.2 percent during the quarter.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences and drive measurable results. PAN services clients out of the firm's four offices: Boston, San Francisco, New York City and Orlando.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above