Abercrombie & Fitch Co., an omnichannel specialty retailer of apparel and accessories, anticipates annual revenues of US $ 4.1 billion to US $ 4.3 billion and annual operating margin rate of at or above 8 per cent by the end of fiscal 2025 as part of its Always Forward Plan.
The company intends to self-fund an agile investment plan focused on driving omnichannel growth across digital marketplace and offline stores, and it aims to generate a cumulative minimum of US $600 million in free cash flow from FY‘22 to FY‘25 in order to provide consistent shareholder returns.
The Abercrombie & Fitch and Abercrombie Kids brands would aim for a 6 per cent to 8 per cent sales compound annual growth rate (CAGR) over the three years ending in FY‘25; the Hollister brand would aim for a flat to 2 per cent sales CAGR over the 3 years; and the Gilly Hicks brand would aim for a 15 per cent sales CAGR.
Commenting on the financial targets, CEO, Abercrombie & Fitch, Fran Horowitz, said “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.”
