Abercrombie and Fitch sales hit $4.3bn in FY23

Abercrombie and Fitch has reported net sales of $4.3bn (£3.4bn) for the full-year ending 3 February, up 16% as compared to last year.

Throughout the year, Abercrombie brands finished with a 27% net sales growth to $2.2bn (£1.7bn) compared to $1.7bn (£1.3bn) in 2022, reflecting a 10% compound annual growth rate from fiscal 2019. 

Hollister brands sales growth increased 6% to $2bn (£1.5bn), compared to $1.9bn (£1.4bn) the previous year. 

The company improved gross profit rate by 600 basis points and delivered an operating margin of 11.3%, the highest in fifteen years and up 880 basis points to full year 2022. Group’s operating income reached $485m (£377m).

For the first quarter of fiscal 2024, the company now expects net sales to be up low double-digits to fiscal first quarter 2023 level of $836m (£651m) and an operating margin to be in the range of 8% to 10% compared to adjusted operating margin of 4.6% in Q1 2023.

Fran Horowitz, chief executive officer, said: “Following several years of transformation across our brands, people and operating model, fiscal 2023 was a defining year for our company. In the first full year of our Always Forward Plan, we executed our playbook, delivering the right product, voice and experience across regions and brands to our global customers.

“We entered fiscal 2024 in a position of strength with momentum across our brand portfolio. The success of our playbook gives us confidence that we can now shift more of our focus to expanding our global customer base. This year, our goal is to deliver sustainable, profitable growth while making the necessary investments to build and support our longer-term ambition of $5 billion in global sales.”