Abercrombie & Fitch Co. (NYSE: ANF) found itself on a downward slide Tuesday, soon after revealing results for the third quarter ended November 2.
Net sales of $863.5 million were fairly flat on a reported basis and up 1% on a constant currency basis as compared to last year.
Operating income was $14.5 million, compared to $39.7 million last year on a reported basis. Operating income on an adjusted non-GAAP basis, which excludes pre-tax flagship store asset impairment charges this year and legal benefits last year was $24.9 million down from $36.7 million last year, reflecting the adverse impact of changes in foreign currency exchange rates of $5 million.
Net income per diluted share was $0.23 as compared to $0.33 last year on an adjusted non-GAAP basis.
Said CEO Fran Horowitz, “We achieved another quarter of constant currency revenue growth and positive U.S. comps across brands, while maintaining tight expense management. Continued U.S. momentum was offset by challenges across several of our key international markets as well as a complicated global operating environment, which weighed on overall results.
“Despite these challenges, we ended the quarter with a balanced inventory position and have seen good response to our new assortments as weather has turned more seasonal, giving us confidence in our product and messaging for the important holiday period.”
Earlier this month, Board of Directors declared a quarterly cash dividend of $0.20 per share on the Class A Common Stock of Abercrombie & Fitch Co., payable on December 16, to stockholders of record at the close of business on December 6.
ANF dropped $1.09, or 6.7%, to $15.24.