Abercrombie Plans Hollister Flagship, Growth

NEW ALBANY, OH-Abercrombie & Fitch’s new fifth concept is in the design stage, as is a flagship store for Hollister, executives said at its second quarter conference call. The new concept and international expansion for Hollister, are part of an overall expansion plan that also includes stores throughout Europe and Japan.

“We are aggressively looking for locations in Italy, France, Germany, Spain, Denmark and Sweden,” as well as additional sites in Britain, said Michael W. Kramer, executive vp and CFO.

Earlier this month, the company announced plans to open a Tokyo flagship in the Ginza district in late 2009. It will be Abercrombie’s first flagship in Asia.

For fiscal 2007 the company plans six new Abercrombie & Fitch stores, 25 new abercrombie stores, 56 new Hollister Co. stores, seven new RUEHL stores, and “Concept 5″ stores, which will debut in January.

“There is absolutely no concern as to real estate availability, both on the domestic and international front,” Kramer said.

For the quarter, the company reported net income of $81.3 million, a 24% increase over the same period in 2006. Total net sales increased 22% to $804.5 million. Comparable store sales decreased 2%.

The company operates 362 Abercrombie & Fitch stores, 186 abercrombie units, 419 Hollister Co. stores and 17 RUEHL stores in the United States, as well as three Abercrombie & Fitch stores and three Hollister Co. stores in Canada, and one Abercrombie & Fitch in London.