The US clothing group Abercrombie & Fitch Co. was able to keep its sales almost constant in the 2022/23 financial year thanks to solid Christmas business and just avoided slipping into the red. This emerges from the latest results presented by the company on Wednesday.
According to this, group sales in the past financial year, which ended on January 28, were 3.70 billion US dollars and thus only marginally below the level of the previous year (-0.4 percent). Adjusted for exchange rate changes, revenues increased by two percent.
The Abercrombie division, with the Abercrombie & Fitch brand and the children’s clothing line Abercrombie Kids, posted a sales increase of eleven percent (currency-adjusted +13 percent) and came to 1.73 billion US dollars. That was enough to almost fully offset losses in the Hollister segment, which includes the Hollister, Gilly Hicks and Social Tourist labels. There, revenues fell by nine percent (currency-adjusted -6 percent) to 1.96 billion US dollars.
Higher freight and raw material costs as well as further consequences of inflation and investments in digital infrastructure ensured that operating profit slipped by 73 percent to 92.6 million US dollars. Net income attributable to shareholders was $2.8 million, down from $263.0 million a year ago (-99 percent).
For the current year 2023/24, the group management expects only slight improvements: It forecasts an increase in sales of one to three percent and an increase in the operating margin to four to five percent.