As part of its investor day this week, the US clothing group Abercrombie & Fitch Co. presented its goals for the coming years. In the long term, the company aims to increase its annual sales to five billion US dollars (4.8 billion euros). Most recently it was around 3.7 billion US dollars.
The company became more specific for the period up to 2025. By then, annual sales should reach between 4.1 and 4.3 billion US dollars. The group has particularly high hopes for the young label Gilly Hicks, whose sales are expected to increase by an average of 15 percent per year. In the Abercrombie segment, with the Abercrombie & Fitch and Abercrombie Kids brands, average annual growth in the range of six to eight percent is expected. With the Hollister label, however, the company only expects an average plus of zero to two percent for the next three years.
In order to achieve the goals, the group relies on its new growth concept “Always Forward Plan”. The strategy envisages the targeted expansion of the individual brands and a “digital revolution” throughout the company. At the same time, the clothing supplier wants to continue to strive for “financial discipline”. The operating margin should be at least eight percent annually by 2025 and increased to more than ten percent in the long term.