The company will launch the new format, now still called"concept five," with three units in January, growing to sevenstores by March 2008, even as it continues to grow its existingchains. The plans include six new Abercrombie & Fitch stores,67 new Hollister Co. stores, 27 new abercrombie stores, and 10 newRuehl stores in 2007. The children-oriented abercrombie stores willsee a particularly strong growth spurt, including a possibleexpansion into Canada.

|

"We had not aggressively been expanding [the] kids [stores],"said Michael S. Jeffries, CEO and chairman of Abercrombie &Fitch Co. "But with their success, it clearly has opened up morestore locations. We can take that brand to about 250locations."

|

International expansion also is a major part of the plan.Abercrombie & Fitch's first European store will open in Londonon March 22nd, and the firm is exploring Tokyo and other "keyEuropean markets" to grow both Abercrombie & Fitch andHollister in 2008.

|

"We're very excited about the Hollister expansion overseas,"said Michael W. Kramer, SVP and CFO. "As we are looking forproperties for A&F, we're starting to see great properties forHollister, as well."

|

At year-end, the company operated 357 Abercrombie & Fitchstores, 177 abercrombie stores, 390 Hollister Co. stores, and 14RUEHL stores in the United States at the end of Fiscal 2006. Thecompany also operated three Abercrombie & Fitch stores andthree Hollister Co. stores in Canada.

|

For the fourth quarter, net sales increased 18% from theprevious year to $1.139 billion. Net income was $198.2 million, up20% over the fourth quarter of the previous year. Comp-store salesdeclined 3% for the quarter.

|

For the year, the company reported a net sales increase of 19%to $3.318 billion. Comp-store sales rose 2%. Net income was $422.2million, up 26% from the previous year. The most recent fiscal yearhad 53 weeks, compared with the 52-week year that ended in January2006.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.