Abercrombie & Fitch Reports 14.4% Increase in Net Sales to $1.21 Billion

Abercrombie & Fitch Co. reported significant financial growth in its latest quarterly results, with net sales reaching $1.21 billion for the thirteen weeks ended November 2, 2024, a 14.4% increase from $1.06 billion in the same period last year. For the thirty-nine weeks, net sales rose 19% to $3.36 billion, compared to $2.83 billion in the prior year. The company’s operating income also saw a notable increase, rising to $179.3 million for the quarter, up from $138 million a year earlier, while year-to-date operating income surged to $484.8 million from $261.9 million.

The company attributed its revenue growth to a combination of factors, including a high-single-digit increase in unit volume driven by increased traffic in both physical stores and digital channels. The average unit retail price also saw a mid-single-digit increase due to lower promotional activity and a shift towards higher-ticket items. Comparable sales for the quarter were up 16%, reflecting strong performance across all regions, particularly in the Americas, which saw a 14% increase in net sales.

In terms of operational developments, Abercrombie & Fitch has been actively optimizing its store network, opening 39 new stores and remodeling 30 during the fiscal year. The company plans to continue this trend, targeting approximately 20 net store openings while closing around 40 stores. The company’s inventory levels increased significantly, reaching $692.6 million as of November 2, 2024, compared to $469.5 million at the beginning of the fiscal year, reflecting its strategy to support anticipated sales growth.

The company also made strategic financial moves, including the redemption of its outstanding 8.75% Senior Secured Notes, which amounted to $214 million, and the establishment of a $500 million asset-based revolving credit facility. As of the end of the reporting period, Abercrombie & Fitch had cash and equivalents of $683.1 million, down from $900.9 million at the beginning of the fiscal year, but still maintaining a strong liquidity position of approximately $1.1 billion.

Looking ahead, Abercrombie & Fitch remains focused on executing its 2025 Always Forward Plan, which emphasizes digital transformation, targeted growth strategies, and financial discipline. The company is aware of the macroeconomic challenges, including inflation and geopolitical uncertainties, but is committed to leveraging its operational strengths to drive sustainable growth and profitability in the coming quarters.