Abercrombie & Fitch Sexier This Morning As It Beats Estimates

Abercrombie & Fitch Co. ANF beat Wall Street earnings estimates, thanks in large part to increasing profit margins and international product offerings. Shares have risen 91% over the past year, and were up another 3.9% in pre-market on the earnings beat, as the company has continued to win back market share on lower prices. The company said it earned 28 cennts per share on revenues of $836.7 million, blowing past Wall Street estimates of 12 cents per share on revenues of $831.45 million. Gross margins rose to 65% from 62.7%, as average unit costs fell, and a favorable international mix. Same-store sales for Abercrombie rose 8%, Abercrombie Kids rose 11%, as did sales at Hollister. Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: "We are pleased with our first quarter results, which exceeded our internal objectives and reflected broad strength by brand, by channel, and by region. These strong results give us a solid start to achieving our goals for the year." The company's board of directors declared a quarterly cash dividend of $0.175 per share on the Class A Common Stock of Abercrombie & Fitch Co. payable on June 14, 2011 to shareholders of record at the close of business on May 27, 2011. For 2011, the company said it anticipates opening five international Abercrombie & Fitch flagship locations during Fiscal 2011, 40 mall-based Hollister stores, and a minimal number of domestic store openings in 2011. In addition, Abercrombie said it expects to close around 50 domestic stores during fiscal 2011.