Abercrombie reports another strong quarter as revenue, comps surge; names CFO
Abercrombie & Fitch kept its momentum going during its third quarter, reporting growth across its brands and double-digit sales growth for the sixth consecutive period.
The apparel retailer has emerged as one of the strongest players in its segment — and in all of specialty retail — and its third-quarter results did not disappoint as it once again reported top- and bottom-line growth that topped Street expectations. The company also its full-year sales guidance.
Separately, Abercrombie announced the promotion of Robert Ball to CFO, effective Nov. 20, 2024. He succeeds Scott Lipesky, who served as the company’s CFO since 2017 and was promoted to COO in May 2023.
Abercrombie's net income rose 10.9% to $131.98 million, or $2.50 a share, for the quarter ended Nov. 2, up from $96.2 million, or $1.83 a share, in the year-ago quarter. Adjusted earnings came to $2.50 a share, beating analysts’ estimates of $2.39 a share.
Net sales increased 14% to $1.21 billion, ahead of estimates of $1.19 billion. Comparable sales surged 16%. By division, comparable sales at Abercrombie brands rose 11% (on top of 26% last year). Comp sales at Hollister rose 21% (on top of 7% last year).
“With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model,” said CEO Fran Horowitz. “Each of our regions grew double-digits in the quarter, with the Americas growing 14%, EMEA growing 15% and APAC growing 32%.”
Based on its third quarter outperformance and outlook for the fourth quarter, the company said it is increasing its full year outlook on sales and expects to be around the high end of the operating margin range shared last quarter.
Abercrombie now expects 2024 sales to rise 14% to 15% compared its previous guidance of 12%to 13%. Operating margin is expected to be about 15%, compared to its prior previous expectation of 14% to 15%.
While some industry experts had cautioned that the arrest of Abercrombie’s former CEO, Mike Jeffries, in September might affect Abercrombie’s results, that did not appear to be the case. The retailer, which has been transformed under Horowitz’s leadership, sounded a confident note heading into the holidays.
“Our teams are engaged and ready to deliver for our customers this holiday season with the goal of achieving sustainable, profitable growth firmly in our sights,” said Horowitz.
Abercrombie & Fitch Co. operates approximately 770 stores across North America, Europe, Asia and the Middle East.
