Abercrombie & Fitch reported a profit in its second quarter results, but this won't prevent the company from closing 60 stores. The company said in its press release that is plans to close 60 stores during its fiscal 2010 year. Most of the store closing will come at the end of they year when the store's lease expires.
The Company expects to close approximately 60 domestic stores over the course of Fiscal 2010, predominantly at the end of the year. The majority of these closures will be by way of natural lease expirations. In addition, there are a number of stores where buy-outs or other closures prior to lease expiration are expected. Associated with these closures, the Company incurred a non-cash, pre-tax asset impairment charge of $2.2 million, included in stores and distribution expense, for the thirteen weeks ended July 31, 2010.
Abercrombie closed its Ruehl stores last year. The retailer has been discounting and running sales after initially being opposed to the idea.
Abercrombie & Fitch reported a profit in its second quarter results, but this won't prevent the company from closing 60 stores. The company said in its press release that is plans to close 60 stores during its fiscal 2010 year. Most of the store closing will come at the end of they year when the store's lease expires.
