Abercrombie & Fitch has posted another quarter of robust sales growth, extending its track of improvements over the past year.
The company’s third-quarter net sales jumped 14 per cent year-on-year to $1.2 billion while comparable sales rose 16 per cent. This marked the sixth consecutive quarter of double-digit net sales growth.
According to GlobalData MD Neil Saunders, the company is “one of the heroes of retail” and has produced growth like few other retailers have managed.
The sales uplift was delivered off the back of 20 per cent growth in the prior year, and compared to 2022, third-quarter sales have grown 37.4 per cent.
“This is a spectacular performance which proves that the turnaround program instituted by management has worked and is still delivering,” Saunders stated.
Both the Hollister and Abercrombie divisions were in growth this quarter, with sales up 13.8 per cent and 15 per cent respectively.
The analyst said Abercrombie continues to secure greater spend from existing customers and win new ones, while Hollister also gained a lot of momentum following its efforts to reset the range.
By region, the company’s sales were up 14 per cent in the Americas, 15 per cent in EMEA and 32 per cent in Apac. Its net income rose from $97.7 million last year to $133.8 million.
For the full year, the retailer has raised its outlook and expects net sales to grow 14-15 per cent, compared to the prior range of 12-13 per cent.
“There is headroom for further organic growth,” Saunders said. “When new initiatives such as overseas expansion, range extensions, and more embryonic brands like Gilly Hicks are factored into the mix, there is a lot to like about the future of the company and its brands.”
