Despite the macro environment remaining challenging and uncertain, Abercrombie & Fitch said it has proven that it can deliver growth across brands and regions, as long as it stays focused on its consumers and executes its playbook.
Abercrombie & Fitch posted a 20% jump in sales thanks to a strong back-to-school shopping season and growth at both its namesake brand and Hollister.
With a refreshed brand aesthetic and evolved assortment, the Hollister brand achieved 11% growth for the third quarter.
By region, net sales grew 22% in the Americas, 14% in EMEA and 13% in APAC. On a comparable sales basis, the Americas grew 16% in Q3. EMEA grew 15% and APAC grew 32%.
“As we enter the peak holiday season, our inventory is in a significantly better place compared to last year, giving us the opportunity to be strategic with promotions,” said Fran Horowitz the CEO and director of Abercrombie & Fitch Co.
Key results from Abercrombie & Fitch Q3:
- The company achieved net sales growth of 20% to $1.1bn
- Operating income of $138m compared to $18m the previous year
- Net income of $97.8m compared to a loss of $718m
Touching on the supply chain, Abercrombie & Fitch continues to see freight cost shipping times and performance at good levels. According to the company, inventory was down 20% last year at the end of the quarter and said it will continue to chase across brands.
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Horowitz added: “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. As such, we are increasing our full-year outlook for both net sales growth and operating margin.”
The apparel company now expects net sales to rise between 12% and 14% for fiscal 2023, compared with its earlier forecast of 10% growth and operating margin to also be around 10%, up from its previous range of 8% to 9%.