US retailer Abercrombie & Fitch's sales climb 21% in Q2 FY24

The company’s gross profit rate improved to 64.9 per cent in Q2 FY24, representing an increase of approximately 240 basis points compared to the prior year. Operating expenses, excluding other operating income, net, amounted to $561 million, up from $497 million in the same quarter last year. However, operating expenses as a percentage of sales improved to 49.4 per cent, down from 53.2 per cent last year, the company said in a media release.

The company's operating income surged to $176 million, a significant increase from $90 million in the same period last year. Net income per diluted share also saw a substantial rise, reaching $2.50, compared to $1.10 per diluted share last year.

Net sales by segment for Q2 FY24 were strong across all regions. In the Americas, sales grew by 23 per cent to $901.2 million, with comparable sales up 18 per cent. The Europe, Middle East, and Africa (EMEA) region saw a 16 per cent increase in net sales, reaching $199.7 million, with comparable sales up 17 per cent. The Asia-Pacific (APAC) region reported a modest 3 per cent increase in net sales to $33.1 million, but a robust 21 per cent rise in comparable sales.

By brand, Abercrombie posted net sales of $582.4 million, a 26 per cent increase compared to the same quarter last year, with comparable sales up 21 per cent. Hollister also performed well, with net sales of $551.6 million, a 17 per cent increase from last year, and a 15 per cent rise in comparable sales.

“Our team continued to execute at a very high level in the second quarter, resulting in better-than-expected sales growth and profitability. The strength of our brand portfolio and improvements we’ve made in global capabilities resulted in broad-based growth across regions, brands and channels. The Americas led our performance this quarter with net sales growth of 23 per cent on top of 19 per cent growth last year, along with continued strong results in EMEA with growth of 16 per cent,” said Fran Horowitz, chief executive officer.

Fibre2Fashion News Desk (DP)