For the longer-term, the company believes it can reach $5 billion of annual revenues and a sustainable annual operating margin rate at or above 10 per cent, the company said in a media release.

The Abercrombie & Fitch and Abercrombie kids brands are targeting 6 per cent to 8 per cent sales CAGR, the Hollister brand is targeting a flat to 2 per cent sales CAGR and the Gilly Hicks brand is targeting a 15 per cent sales CAGR over the three years ending in fiscal 2025. Abercrombie & Fitch adults is expected to be the largest contributor to growth.

“The company is in a dramatically different place than we were at our last Investor Day just four years ago. Today, we have clearly defined positioning at each of our global brands with unique edit points, a smaller, modernised and more profitable omni-enabled store base, digital penetration and meaningful cash generation. Our company and brands are purpose-led, and listening to and learning from our global customer is deeply ingrained in our thinking and culture in a way that it never has been before. We are committed to constantly adapting to meet and exceed their ever-changing needs, and I firmly believe that the changes we have made position us to deliver steady growth,” CEO Fran Horowitz said.

“Over the last several years, we have consistently proven our ability to navigate through unprecedented challenges while maintaining a focus on making progress against our long-term strategic goals. Our Always Forward Plan reflects the dynamic global, economic and political environment, with an expectation for known and unknown consumer pressures to emerge. This provides us with multiple avenues to achieve our targets, giving us confidence that we can meet our 2025 and longer-term plan. Going forward, we are focused on maintaining our expense discipline and plan to continue to seek expense efficiencies while protecting and funding our Always Forward targets and generating significant cash flow,” explained Horowitz.

Fibre2Fashion News Desk (RR)