US' Abercrombie & Fitch's net sales surge 22% to $1 bn in Q1 FY24

Gross profit rate improved to 66.4 per cent, an increase of approximately 540 basis points from the previous year. The company's operating expenses, excluding other operating income, net, were $549.6 million for the quarter, which decreased to 53.8 per cent of sales from 57.3 per cent last year, the company said in a press release.

Operating income for the quarter reached $130 million, a significant increase from last year's operating income of $34 million on a reported basis and $38 million on an adjusted non-GAAP basis. Net income per diluted share was $2.14, compared to $0.32 on a reported basis and $0.39 on an adjusted non-GAAP basis in the previous year.

In terms of brand performance, Abercrombie reported net sales of $571.5 million, a 31 per cent increase from $436 million last year, with a 29 per cent increase in comparable sales. Hollister, another key brand under the company, achieved net sales of $449.2 million, up 12 per cent from $400 million last year, with a 13 per cent increase in comparable sales.

“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 per cent growth and Hollister brands delivering growth of 12 per cent. Strong top-line growth, along with gross profit rate expansion, led to record first quarter operating income and an operating margin of 12.7 per cent,” said Fran Horowitz, chief executive officer.

Fibre2Fashion News Desk (DP)