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Abercrombie ups full-year guidance after “outstanding first quarter”

Chloe Burney
30 May 2024

Abercrombie & Fitch Co. has regained popularity in recent years after ditching its early 2000s messaging for a new, inclusive ethos aimed at reigniting its millennial following. The company has today revealed its “excellent” performance during the first quarter, ending 4 May 2024, with net sales reaching £790 million ($1 billion), up by 22%.

Further first quarter results are as follows:

  • Comparable sales were up by 21%.
  • Gross profit rate of 66.4%, up approximately 540 basis points compared to the year prior.
  • Operating income stood at £102 million ($130 million), compared to £26 million ($34 million) the year prior.
  • Net income per diluted share was £1.68 ($2.14).

Growth was broad-based across regions and brands, with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%.

Fran Horowitz, Chief Executive Officer at Abercrombie, said: "Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook. We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations.

"With excellent first quarter performance, we are increasing our full-year sales and operating margin outlook. We remain on track to achieve our 2024 goal of demonstrating sustainable, profitable growth after a defining year for the company in fiscal 2023. Our brands are delivering high-quality, on-trend assortments for new and retained customers across regions and brands. Importantly, we continue to make strategic investments across stores, digital and technology to further strengthen the company in pursuit of our long-term ambition."

Looking ahead, the company now expects net sales to be up around 10% from £3.3 billion ($4.3 billion) for the fiscal year. This is an increase to the previous outlook of growth in the range of 4% to 6%. Abercrombie brands are expected to continue to outperform Hollister brands and the Americas will continue to lead the regional performance.


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