Retailers have teased and rolled out online deals for days, even weeks, but the real Black Friday is here.
CEO Mike Jeffries sees direct sales, which are all online, one day reaching $1 billion.
Sales were up across the board, including online, for specialty apparel chain retailer Abercrombie & Fitch Co. in the second quarter. But the company expects to close up to 65 stores this year as it lays plans to eventually become a $1 billion e-commerce brand.
For the second quarter ended July 30, Abercrombie, No. 56 in the Internet Retailer Top 500 Guide, reported:
- Web sales increased 28.1% $102.1 million from $79.7 million in the second quarter of 2010.
- Total sales grew year over year 22.9% to $916.8 million from $745.8 million.
- Comparable-store sales increased 9%.
- Net income increased 64.1% to $32.0 million from $19.5 million in the second quarter of 2010.
Internet Retailer estimates the web accounted for 11.1% of total sales compared with 10.7% in the second quarter of 2010.
During the second quarter earnings call with Wall Street analysts, CEO Mike Jeffries says Abercrombie plans to reach annual web sales of $1 billion in the foreseeable future, although he didn’t provide a timeline or additional details. He also told analysts that Abercrombie, which recorded web sales of $352.5 million in 2010 and currently operates 1,073 Abercrombie & Fitch, Abercrombie Kids, Hollister Co. and Gilly Hicks stores in the U.S., will close up to 65 underperforming stores this year.
“Our direct-to-consumer business again posted strong growth of 28% for the quarter, as we work toward our $1 billion goal,” Jeffries told analysts. “This business remains a major strategic priority and source of investment.”
For the first two quarters:
- Web sales increased 30.2% $207.9 million from $159.7 million in the first two quarters of 2010.
- Total sales grew year over year 22.4% to $1.75 billion from $1.43 billion.
- Net income increased 641.6% to $57.1 million from $7.7 million in the first two quarters of 2010.
Internet Retailer projects the web accounted for 11.9% of total sales compared with 11.2% in the first two quarters of 2010.