The news for Q4 and FY23 follows Abercrombie & Fitch beating its own expectations for the Q3 period with sales increasing 20%.
Abercrombie & Fitch said each of its brands continued to deliver “solid sales growth” led by Abercrombie brands and the Abercrombie & Fitch women’s business is expected to achieve its highest-ever fourth quarter sales complemented by an acceleration in men’s growth.
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Hollister brands is expected to deliver year-over-year fourth-quarter sales growth led by the women’s business and Abercrombie is expecting Hollister brands will also achieve significant fourth-quarter gross profit rate expansion, enabled by improved product and inventory management.
Abercrombie & Fitch Q4 fiscal 2023 outlook
- Net sales: up high teens from previous guidance of up low double-digits
- Operating margin: around 15% from previous guidance of in the range of 12-14%
FY23 outlook
- Net sales growth of around 14-15% from previous guidance of 12-14%
- Operating margin around 11% from previous guidance of around 10%
Abercrombie & Fitch Co.’s CEO Fran Horowitz said: “As we approach the end of our fiscal year, we proudly reflect on how much our team has accomplished across product, voice and experience. Our results show that our playbook is working, giving customers compelling reasons to engage, shop and stay with our family of brands. We believe our increased full year fiscal 2023 expectations will put us ahead of schedule on our Always Forward Plan 2025 financial targets. Importantly, we expect to exit fiscal 2023 poised for sustainable, profitable sales growth fuelled by several years of transformational investments in our brands, people and operating model. A huge thank you to the thousands of global associates who have worked so hard to make all of this possible.”
