Abercrombie & Fitch posts surge in Q3 profit

Third quarter net sales at Abercrombie & Fitch Co. of 820 million dollars, were down 5 percent as compared to last year, reflecting the adverse impact of Covid-19 on store sales. The company said in a statement that digital net sales increased 43 percent to 382 million dollars reflecting robust growth in every month of the quarter. Gross profit rate improved 390 basis points to 64 percent, operating income improved to 59 million dollars and 65 million dollars on a reported and adjusted non-GAAP basis, respectively, while net income per diluted share improved to 66 cents and 76 cents on a reported and adjusted non-GAAP basis, respectively, compared to 10 cents and 23 cents on a reported and adjusted non-GAAP basis, respectively.