Abercrombie & Fitch 2009 Annual Report Download - page 42

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The table below presents the significant components of RUEHL’s results included in Net Loss from
Discontinued Operations on the Consolidated Statements of Operations and Comprehensive Income for fiscal
years ended January 30, 2010, January 31, 2009 and February 2, 2008.
2009 2008 2007
NET SALES .................................. $ 48,393 $ 56,218 $ 50,192
Cost of Goods Sold ............................. 22,037 25,621 26,990
GROSS PROFIT ............................... 26,356 30,597 23,202
Stores and Distribution Expense.................... 146,826 75,148 42,668
Marketing, General and Administrative Expense ........ 8,556 14,411 18,978
Other Operating Income, Net ...................... (11) (86) (28)
NET LOSS BEFORE INCOME TAXES(1) ........... $(129,016) $(58,876) $(38,416)
Income Tax Benefit ............................. (50,316) (22,962) (14,982)
NET LOSS FROM DISCONTINUED OPERATIONS,
NETOFTAX............................... $ (78,699) $(35,914) $(23,434)
NET LOSS PER SHARE FROM DISCONTINUED
OPERATIONS:
BASIC .................................... $ (0.90) $ (0.41) $ (0.27)
DILUTED .................................. $ (0.89) $ (0.40) $ (0.26)
(1) Includes non-cash pre-tax asset impairment charges of approximately $51.5 million and $22.3 million
during the fifty-two weeks ended January 30, 2010 and January 31, 2009, respectively, and net costs
associated with the closure of the RUEHL business, primarily net lease termination costs of approx-
imately $53.9 million and severance and other charges of $2.2 million during the fifty-two weeks ended
January 30, 2010.
CRITICAL ACCOUNTING ESTIMATES
The Company’s discussion and analysis of its financial condition and results of operations are based
upon the Company’s consolidated financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of America. The preparation of these con-
solidated financial statements requires the Company to make estimates and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses. Since actual results may differ from those
estimates, the Company revises its estimates and assumptions as new information becomes available.
The Company’s significant accounting policies can be found in Note 2, “Summary of Significant
Accounting Policies,” of the Notes to Consolidated Financial Statements. The Company believes the
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