Abercrombie and Fitch Q1 sales surge to $1bn
Looking ahead, the group expects mid-teens net sales growth for the second quarter and around 10% for the full year
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Abercombie and Fitch has reported a 22% increase in net sales to $1bn (£787.3m) for the first quarter ended 4 May 2024.
The American retailer said the positive growth marks the highest first quarter net sales in company history.
The group also saw its Q1 operating income climb to $130m (£102.3m) as compared with $34m (£26.7m) in the prior year.
Meanwhile the brand’s revenues in the Americas increased 23% to $820m (£645.5m), while EMEA recorded an 18% increase to $164m (£129.1m) and APAC saw a 10% increase to $35m (£27.5m).
According to its net sales by brands, Abercrombie’s revenues were up 31% to $571m (£449.5m) and its Hollister revenues increased by 12% to $449m (£353.5m).
Looking ahead, the group expects mid-teens net sales growth for the second quarter and around 10% for the full year.
Fran Horowitz, chief executive officer, said, “Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook. We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations.
“Growth was broad-based across regions and brands with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%. Strong top-line growth, along with gross profit rate expansion, led to record first quarter operating income and an operating margin of 12.7%.”
Horowitz added: “With excellent first quarter performance, we are increasing our full year sales and operating margin outlook. We remain on track to achieve our 2024 goal of demonstrating sustainable, profitable growth after a defining year for the company in fiscal 2023.
“Our brands are delivering high-quality, on-trend assortments for new and retained customers across regions and brands. Importantly, we continue to make strategic investments across stores, digital and technology to further strengthen the company in pursuit of our long-term ambition.”
