US' Abercrombie & Fitch's net sales soar 16% in FY23

The company's gross profit rate surged to 62.9 per cent, up by around 600 basis points from the previous year. Operating expenses, excluding other operating income, net, increased by 10 per cent compared to the last year, though as a percentage of sales, they decreased to 51.7 per cent from 54.5 per cent. Operating income significantly improved to $485 million on a reported basis and $489 million on an adjusted non-GAAP basis, a substantial rise from last year's $93 million and $107 million, respectively.

Net income per diluted share saw a dramatic increase to $6.22 on a reported basis and $6.28 on an adjusted non-GAAP basis, compared to $0.05 and $0.25 last year, respectively, the company said in a press release.

For the fourth quarter of fiscal 2023, the company reported net sales of $1.5 billion, a 21 per cent increase on both reported and constant currency bases compared to the previous year, with the additional week contributing approximately $50 million or 430 basis points. Comparable sales for the quarter were up by 16 per cent.

The fourth quarter's gross profit rate matched the annual figure at 62.9 per cent, showing an increase of 720 basis points over the prior year. Operating expenses rose by 19 per cent compared to the previous year but as a percentage of sales, dropped to 47.6 per cent from 48.3 per cent.

Operating income for the quarter stood at $223 million, compared to $87 million and $92 million last year, on reported and adjusted non-GAAP bases, respectively. Net income per diluted share for the quarter was reported at $2.97, up from $0.75 and $0.81 on reported and adjusted non-GAAP bases last year.

“Our strong fourth quarter was fuelled by sales growth across regions and brands. Abercrombie brands grew net sales 35 per cent, continuing an impressive multi-quarter growth trend, while Hollister brands grew 9 per cent, delivering a third consecutive quarter of sales growth. By staying close to our customers, tightly controlling inventories and continuing to operate with financial discipline, our team delivered year-over-year fourth quarter operating margin expansion of 800 basis points, reaching 15.3 per cent,” said Fran Horowitz, chief executive officer.

Fibre2Fashion News Desk (DP)