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Details on Industry Insight.
Abercrombie & Fitch released its fourth quarter and full year results Wednesday morning and provided some interesting details about the company’s Hollister business, including its aggressive international expansion plans.
Hollister, Abercrombie’s biggest and best performing chain, is modeled after the surf lifestyle.
Overall, Abercrombie & Fitch’s Q4 net income plunged to $19.6 million vs. $92.6 million the same period last year, including the impact of impairment charges.
Fourth quarter total company sales rose 16% to $1.3 billion.
Same store sales: up 2%
Same store sales: up 8%
The company opened 39 Hollister stores internationally last year. It now has 77 international Hollister stores.
The 62 Hollister stores outside of North America average $10 million in annual revenue per store, ahead of expectations, the company said.
Hollister will open 40 stores internationally in 2012, and plans to open 30 to 40 new international stores each year going forward.
Here is the break down of Hollister’s current international locations: 12 in Canada, 26 in the UK, 11 in Germany, five in Italy, eight in Spain, one in Ireland, one in Hong Kong, two in Sweden, four in France, two in Belgium, three in Austria, two in China.
Overall, Abercrombie & Fitch’s European revenue grew 85% last year, and Hollister accounts for two thirds of that figure.
The company’s “four wall” margins in Europe are above 30%.
Hollister will open its third mall store in China in March and plans more stores for the country in 2012.
Abercrombie said it has downsized its Hollister store in Soho in New York. Overall, the company closed 71 stores in the U.S. in 2011, including eight Hollister stores.
Abercrombie has identified 180 stores in its U.S. store fleet that could close through 2015, executives said. The majority will be Abercrombie & Fitch and Abercrombie Kids stores rather than Hollister stores, the company said.