Abercrombie & Fitch Co. reported net income of $77.8 million for the second quarter, a decrease from $81.3 million last year.
The New Albany, OH firm posted net sales of $845.8 million for the quarter ended Aug. 2, a 5% increase over $804.5 million in the prior year.
The company posted direct-to-consumer net sales of $55.9 million for the quarter, a 23% increase over $44.7 million in the prior year.
The direct marketer and retailer reported its gross profit rate for the quarter was 70.1%, up 130 basis points compared to last year. Management attributed this primarily to a higher initial markup rate. The markdown rate was flat compared to last year.
“Our second quarter financial results reflect difficult macroeconomic conditions and a significant slowdown in consumer spending,” said CEO Mike Jeffries in a statement. “However, we see these challenging times as a great opportunity to place more distance between us and the rest of specialty retail.”
