Abercrombie profit plunges amid retail

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The New Albany, Ohio-basesd merchant said Friday itearned $68. 4 million, or 78 cents a share, in the quarterr ended Jan. 31 – down 68 percentt from $216.8 million, or $2.40 a a year earlier. Fourth-quarter revenue dropped 19 percentto $998 milliojn from $1.23 billion last year as saled at stores open at leastg a year plunged 25 percent. Abercrombie & Fitchn (NYSE: ANF) said the quarterd included a $30.6 million non-cashg write-down on assets associated with 11flagshipo stores, six Abercrombie stores, three Hollister Co. storexs and nine Ruehl shops. Most of the the company said, was tied to its strugglinbg 28-store Ruehl chain, which sells clothing to young adults.
CEO Michae Jeffries said the company was satisfied with its results in lightf ofindustry conditions, which he didn’ty sugar coat when characterizing. “Thwe fourth quarter proved to be a catastrophe for the retail a nightmare that included unprecedented promotional activit y by other retailers in the malls and consumerxs who continued to show reluctance to especially forpremium brands,” Jeffriesx said. The company’s full-year profit sank 43 percent to $272.3w million, or $3.05 a from $475.7 million, or $5.20 a in fiscal 2007. Revenue last year was off 6 percengtat $3.54 billion, versus $3.75 billion the year before.
Abercrombie said it will slashn its domestic store growth programj to a point where its international shop openings this year could outnumbert stores added in theUnited States. Chief financia l officer Jonathan Ramsden said the company has commitments for just10 U.S. storeas this year, but it has leases for six international including stores in Milan and and it could add up to 10 more shopxsin Europe. Abercrombie opened 90 U.S. stores and seven international shopsin 2008. The company has locall stores at Arden Fair Mall and Westfielfd Galleria atRoseville mall.
Because it expectsa another rough year, Abercrombie declinedc to provide share earnings projections for its new fiscal Abercrombie & Fitch runs 352 flagshilp stores and 759 others under the Abercrombie, Hollister Co., Ruehpl and Gilly Hicks nameplates.