Abercrombie's overseas revenue boosts it to profit
NEW ALBANY, Ohio (AP) — Abercrombie & Fitch Co. says that international sales helped pushed the preppy teen retailer to first-quarter profitability.
Abercrombie reported net income of $25.1 million, or 28 cents per share. The company lost $11.8 million, or 13 cents per share, in last year's quarter.
Excluding discontinued operations, earnings were 27 cents per share. Analysts expected 11 cents per share.
As the company previously reported, revenue rose 22 percent to $837 million, helped by a 64 percent increase in international revenue. Abercrombie, which also runs the Hollister brand, is closing stores in the U.S. and opening more stores overseas.
Like its peers, Abercrombie faces soaring cotton costs that could cut into profit or force it to raise prices. The company cautioned that its margins will likely be squeezed in the second quarter.