Stock of the Day
|
Abercrombie & Fitch (ANF)
Abercrombie President To Leave:
On Monday, the Ohio-based apparel retailer Abercrombie & Fitch Co. announced that Robert S. Singer, president and COO, would be leaving the Company effective August 31, 2005. Singer is resigning only after 15 months of employment, following disagreements with Chief Executive Mike Jeffries over Abercrombie's international expansion plans. Coincidentally, Singer's departure comes just four months after Chief Financial Officer Susan Riley stepped down due to family reasons.
|
| Daily Chart |
If you are not able to see the chart, your email client probably does not support javascript. To view it, please click here
|
| Stock Analysis |
In a statement, Chief Executive Mike Jeffries said that although the company appreciated the "significant contributions" Singer made, "there was a difference in approach to the timing and extent" of their expansion into certain international markets. He added that while the company was solidifying plans to expand its operations into Canada and Britain, it would enter other overseas markets at a slower pace. Despite his early unfortunate exit from company and an uncertain future ahead of him, Singer has no regrets but views his employment at Abercrombie as a positive experience. He said: "My time with Abercrombie & Fitch has been an extraordinary experience. I will miss the many wonderful and talented people here, and wish them the greatest future success."
|
Meanwhile, Abercrombie has hired Egon Zehnder to search for a new president and COO. Until a replacement is found, Singer's duties will be split between John Lough, EVP of logistics and store operations, and CFO Mike Kramer. In other news, Abercrombie reported that August sales were "exceptionally strong" Its net sales were $287.4 million for the four-week period ended August 27, 2005, a 36% increase over last year's August sales of $212.1 million. Same-store sales at the namesake stores climbed 13%, while those at the Abercrombie kids stores vaulted 56% and were up 29% at the Hollister Co. stores.
|
Shares of the Abercrombie fell 1.6 percent in after-hours trading. During the regular trading hours, price of shares were up by 34 cents at $57.73, but they eventually declined to $56.83 in late trading. Earlier this year, Abercrombie announced plans for up to 20 stores in Europe by 2007, plus five stores in Canada by the end of this financial year. It will be interesting to see if these and other expansion plans will still come true as planned in nearby future, after the new president and COO will get hired. It is surely a stock to watch over the next few months.
|
Profile |
Abercrombie & Fitch Co. is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. The company's retail activities are conducted under the Abercrombie & Fitch and abercrombie trade names through retail stores, a catalogue, a magazine/catalogue and a website, all bearing some form of the company name. Merchandise is targeted to appeal to customers in specialty markets who have distinctive consumer characteristics.
|
|
|
|
|
