Abercrombie & Fitch reported a GAAP net loss per diluted share of $0.19 for the second quarter ended July 30, 2016, compared to a GAAP net loss per diluted share of $0.01 for the second quarter last year.
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Excluding certain items, the company reported an adjusted non-GAAP net loss per diluted share of $0.25 for the second quarter, compared to adjusted non-GAAP net income per diluted share of $0.12 last year.
The results for the quarter reflect an adverse impact related to year-over-year changes in foreign currency exchange rates of approximately $0.08 per diluted share.
The gross profit rate for the second quarter was 60.9%, 140 basis points lower than last year. Excluding certain items last year, the gross profit rate decreased 20 basis points on a constant currency basis, primarily due to higher average unit costs, partially offset by higher average unit retails.
Stores and distribution expense for the second quarter was $382.9 million, down from $389.2 million last year. Excluding certain items last year, stores and distribution expense decreased $4.9 million, primarily due to the realization of savings on lower sales and expense reduction efforts, partially offset by higher direct-to-consumer expense.
Marketing, general and administrative expense for the second quarter was $111.7 million, down from $119.8 million last year. Excluding certain items last year, marketing, general and administrative expense increased $7.6 million, primarily due to higher marketing and other expenses.
Asset impairment charges of $6.4 million for the second quarter were excluded from adjusted results.
Net other operating income for the second quarter was $13.1 million, compared to net other operating income of $1.1 million last year. Excluding certain items in the second quarter, net other operating income decreased $0.3 million.
Operating loss for the second quarter was $10.8 million, compared to operating income of $2.0 million last year. Excluding certain items, adjusted non-GAAP operating loss for the second quarter was $16.7 million, compared to adjusted non-GAAP operating income of $16.5 million last year.
The effective tax rate for the second quarter was 23%. Excluding certain items, the adjusted non-GAAP effective tax rate for the second quarter was 27%.
Net loss attributable to Abercrombie & Fitch Co. for the second quarter was $13.1 million compared to $0.8 million last year.
Excluding certain items, adjusted non-GAAP net loss attributable to Abercrombie & Fitch Co. for the second quarter was $16.8 million, compared to adjusted non-GAAP net income attributable to Abercrombie & Fitch Co. of $8.6 million last year. ■