Abercrombie & Fitch sets $5 billion annual sales goal

Abercrombie & Fitch Co. is thinking big long-term.

The apparel retailer is targeting $5 billion in annual sales and an operating margin rate at or above 10% as part of its new “Always Forward” plan, which is focused on financial discipline and accelerating a company-wide “digital revolution” that includes expanding its investment in customer analytics.

By the end of 2025, Abercrombie expects annual revenue of $4.1 billion to $4.3 billion with an annual operating margin rate at or above 8%. (The company reported net sales of $3.7 billion for the year ended Jan. 29, 2022.)

Abercrombie identified growth opportunities for its three brands during the next three years. Its namesake and abercrombie kids brands have a 6% to 8% sales compound annual growth rate (CAGR) goal; Hollister has a CAGR goal of flat to up 2%, and the Gilly Hicks intimates brand has a CAGR goal of 15% sales growth. Overall, the Abercrombie adults brand is expected to be the largest contributor to growth.

“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,” said CEO Fran Horowitz. “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.”