The retailer, with 764 stores in the United States, took a $32.9 million charge from the settlement of a class action diversity lawsuit over the quarter. That led to net income coming in at $40.1 million, down from $50.5 million the same year-ago period. The company's same-store sales increased 1% during the quarter.
Abercrombie officials said that they might start replacing some of their kids units with their Hollister stores, which targets high school-aged consumers. "There are some kids stores where we hypothesize that we could do more business with a Hollister store," Singer said, explaining that the children's store are smaller than the typical Hollister. "We need to experiment with this, and if it works we could roll it out in a number of locations."
Over the quarter, the company increased its total store count from 727 units, with Hollister experiencing the most growth. That chain has "huge potential for future growth," said Mike Jeffries, the company's CEO and chairman.
The company will also grow, albeit more slowly, its Ruehl chain, by opening five to eight units next year. The retailer currently has three of those stores, which target shoppers in their late 20's, in operation and will open four more this year.
Abercrombie operates 363 Abercrombie & Fitch stores, 174 abercrombie units, 224 Hollisters and three Ruehls.
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