Abercrombie & Fitch has recorded another quarter of sales growth, the correct strategies allowed the business to keep  driving up the numbers, according to an analyst.

The company’s net sales rose 5 per cent to $1.3 billion for the quarter ended August 2, marking the 15th consecutive quarter of growth.

According to GlobalData MD Neil Saunders, the business has evolved its strategies over time, allowing it to lift its top-line results off the back of some very stiff prior year comparatives.

“The first phase involved rebuilding brand equity that had been severely eroded, followed by retooling the operation to better connect with customers, and then improving relevance. These things won the business more customers – and they produced punchy sales growth.

“Now that work is largely done, the business is looking at how it can optimize and expand a model that works. Some of that can be seen in things like store relocations and enhancements, some of it can be seen in an international push, and some of it can be seen in deepening the emotional connection to customers,” he said.

This quarter, most of the growth came from Abercrombie, where revenue grew 8.1 per cent and comparable sales rose 4 per cent. 

According to Saunders, sales were supported by core customers spending a bit more on apparel overall, as well as a strong assortment with a solid denim collection.

At Hollister, growth was a bit more muted, with revenue up 2 per cent but comparable sales down 3 per cent. 

The analyst noted that much of the decline was due to last year’s very strong 19 per cent uplift. Two-year comparable sales were still up 15 per cent, which is highly impressive and well above the prevailing growth rate of youth spending.

On the bottom line, net income surged 30 per cent to $183.7 million, partly driven by a tariff refund.

The company has raised its outlook for the full year, expecting net sales to grow 5 per cent, compared to the prior range of 3-5 per cent.

“Looking ahead, we are pleased by the brand heat that both main brands continue to maintain. The product development and marketing efforts remain best in class and it is clear that the teams within Abercrombie & Fitch are staying close to customers and trends,” said Saunders.

“This will serve existing stores and channels well, and it also provides a base for more ambitious expansion in new areas, such as the wholesale push of Abercrombie Kids, the Hollister partnership with Target, and some of the expansion via international partners.”