Abercrombie & Fitch returns to 2Q profit

[August 17, 2010]  NEW ALBANY, Ohio (AP) -- Abercrombie & Fitch return to a profit in the second quarter as its strategy of lowering some prices boosted sales.

The chain also says it will close 60 stores in the U.S. in 2010.

The preppy teen clothing seller says net income totaled $19.5 million, or 22 cents per share. A year ago the company lost $26.7 million, or 9 cents per share. Earnings were 24 cents excluding a charge for closing stores.

Analysts expected a smaller 16 cents-per-share gain.

Revenue rose 17 percent to $745.8 million. Analysts expected $727.7 million.

Abercrombie & Fitch Co., based in New Albany, Ohio, has lowered some prices to compete with Aeropostale Inc. and American Eagle Outfitters Inc. for teen dollars.

[Associated Press]

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