‘Wowzers’: Abercrombie & Fitch posts stunning results in subdued market

Abercrombie & Fitch Co has posted a double-digit increase in net sales for the third quarter that ended October 28, led by the sharp growth of the Abercrombie brand.

The company’s net sales were up 20 per cent to US$1.1 billion (up 19 per cent on a constant currency basis), while total comparable sales rose 16 per cent.

The Abercrombie brand’s sales jumped 30 per cent to $547.7 million, with Hollister up by 11 per cent to $508.7 million.

“Wowzers is probably the only way to describe the latest numbers from Abercrombie & Fitch,” said Neil Saunders, MD of GlobalData.

The growth in net sales comes after the impressive 16.2 per cent increase in the previous quarter and off the back of a 2.8 per cent decline in the prior year.

“This remains an outsized performance in a market that is tighter and more constrained than it has been for a long time,” Saunders commented.

Progress was also recorded across all segments, with net sales up 22 per cent in the Americas, 14 per cent in Europe, the Middle East and Africa, and 13 per cent in Asia Pacific.

“While the Americas remains the most important market for Abercrombie & Fitch, the fact that the strategy is playing out well across the globe bodes well for any future geographical expansion the group wishes to undertake,” Saunders added.

On the bottom line, the company swung from a net loss of $2.2 million last year to a profit of $96.2 million this year.

“Entering the important holiday season, our fiscal 2023 year-to-date results give us the confidence that we can continue to deliver for our customers and drive profitable growth,” said CEO Fran Horowitz.

The company raised its full-year outlook, expecting net sales to increase 12 to 14 per cent.

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