The US clothing group Abercrombie & Fitch Co. was also able to significantly exceed market expectations in the third quarter of the 2023/24 financial year. In light of the strong results, the company increased its full-year forecasts again on Tuesday.
Group sales increase by 20 percent
In the 13 weeks prior to October 28, consolidated sales reached $1.06 billion (€964.0 million), an increase of 20 percent compared to the same quarter last year. Adjusted for exchange rate changes, revenue increased by 16 percent.
Both Group segments contributed to the strong growth. The Abercrombie division, with the core brand Abercrombie & Fitch and the children’s fashion line Abercrombie Kids, achieved an increase of 30 percent (+26 percent adjusted for currency effects) to 547.7 million US dollars. In the Hollister division, which, in addition to the label of the same name, also includes the Gilly Hicks and Social Tourist brands, sales rose by eleven percent (+7 percent at constant currency) to $508.7 million.
The clothing supplier can significantly improve its results
Due to lower freight costs and lower inventory write-downs, the clothing supplier was able to significantly improve its gross margin. As a result, operating income, which was only $17.5 million in the same period last year, increased to $138.0 million.
The bottom line was a net profit attributable to shareholders of $96.2 million (€87.8 million), after the company posted a corresponding loss of $2.2 million in the third quarter of last year had to.
The unexpectedly strong progress prompted management to raise its annual targets again. Sales growth of twelve to 14 percent is now expected compared to 2022/23. Until now, only an increase of ten percent was expected. The forecast for the operating margin was increased from eight to nine percent to around ten percent.