Abercrombie & Fitch Q4 Profit Declines 68%

New Albany, Ohio Abercrombie & Fitch Co. said Friday its fourth-quarter profit slid 68%, weighed down by hefty asset impairment and tax costs, and slumping sales. The results were in line with analysts’ expectations.

The company also said that because of the "tumultuous environment," it is cutting costs and declined to issue profit guidance for this year.

In the quarter ended in January, Abercrombie earned $68.4 million, down from $216.8 million a year earlier.

Sales fell 19% to $998 million from $1.29 billion.

Same-store sales fell 25% during the quarter, reflecting declines at all three of the company's divisions: Hollister Co., Ruehl, and its namesake.

It set a capital budget for 2009 of $165 million to $175 million for store openings and remodels, and upgrades for information technology, among other projects.

For the 52-week fiscal year ended Jan. 31, the company reported a net sales decrease of 6% to $3.54 billion from $3.75 billion in the year before.

Total company direct-to-consumer net sales increased 5% to $271.0 million, while same-store sales decreased 13% for the year.