Abercrombie & Fitch’s direct-to-consumer sales rise slightly in Q2
August 26, 2015 01:12 PM
Abercrombie & Fitch Inc. sees its future growth stemming from its omnichannel initiatives.
The retailer, which today reported second quarter revenue, says direct-to-consumer sales, which encompass online purchases and those that include an online component such as online orders placed in a store, accounted for 21% of its overall revenue in the second quarter. That’s up two percentage points from a year earlier. That means direct-to-consumer sales produced roughly $171.7 million during the quarter, a slight gain from an estimated $169.2 million a year earlier.
Mobile commerce is playing a significant role in the retailer's revenue; mobile traffic accounts for more than half of Abercrombie's online traffic, said Jonathan Ramsden, chief operating officer and executive vice president, today during a conference call with analysts.
Abercrombie is also focusing on better integrating its online and offline operations. It is testing reserve-in-store programs in six states and it expects to roll out order-in-store and click-and-collect initiatives to its U.K. locations soon, Ramsden said. "We expect to roll out various enhancements that will enable web-like search capabilities for order-in-store and increase SKU availability and fulfillment efficiencies to ship-from-store," he said.
For the fiscal second quarter ended Aug. 1, Abercrombie, No. 55 in the Internet Retailer 2015 Top 500 Guide, reported:
- Direct-to-consumer sales, which are all online, and omnichannel sales, which include an online transaction, were an estimated $171.7 million based on Internet Retailer's calculations (Abercrombie reported that approximately 21% of its total net sales stemmed from direct-to-consumer and omnichannel sales). A year ago the retailer sold an estimated $169.2 million online.
- Total revenue declined 8.2% to $817.8 million from $890.6 million. Excluding the direct-to-consumer sales, total revenue declined 10.4%.
- Comparable-store sales, which include U.S. and international, declined 8%. U.S. comparable-store sales decreased 7%.
- Net loss was $810,000 compared with a $12.9 million profit a year ago.
- The web accounted for 21.0% of total sales compared with 19.0%.
For the first half of the fiscal 2015, Abercrombie reported:
- Direct-to-consumer sales, which are all online, and omnichannel sales, which include an online transaction, were an estimated $334.9 million compared to an estimated $341.9 million a year ago, a decline of 2.0%.
- Total revenue declined 10.9% to $1.527 billion from $1.713 million.
- Net loss was $64.0 million compared with a $10.8 million loss a year ago.