Compared to November, Abercrombie & Fitch's
Interestingly enough, overall sales in December increased a hefty 14.8% to $603.6 million. This was certainly encouraging, and the stock price increased about 2% to $73.13, although the stock is still below its previous high of $78.80.
The biggest loser was the Abercrombie & Fitch chain, which saw a same-store sales decline of 6%. However, there was strength in the other main brands: Abercrombie (+6%), Hollister (+3%), and RUEHL (+3%).
Moreover, the company has a thriving direct-to-consumer division (this includes the catalog and its websites). There was a 61% increase in sales during December to $38.1 million.
As seen with strength in other hip apparel brands -- such as American Eagle Outfitters
To this end, Abercrombie is in the process of spending over $200 million to renovate its stores. Also, the company must continue to launch new concepts, which it has done quite well over its history.
And, yes, the next one is expected to be launched in 2007, called Concept 5 (that's the code name). If it resonates with consumers, it could be the next catalyst for Abercrombie's stock growth.
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