Abercrombie & Fitch’s first-quarter net sales of US $ 1 billion increased 22 per cent both on a reported and constant currency basis, while comparable sales increased 21 per cent.
Operating income reached US $ 130 million, net income per diluted share jumped to US $ 2.14, and the gross profit rate increased by almost 540 basis points to 66.4 per cent.
Commenting on the company’s trading update, Fran Horowitz, chief executive officer, said in a release, “Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook. With excellent first quarter performance, we are increasing our full-year sales and operating margin outlook.”
The company projects that net sales growth will be in the mid-teens for the second quarter of fiscal 2024, and operating margin will be between 13 and 14 per cent, up from 9.6 per cent in the same quarter of 2023.
The company has raised its forecast for net sales growth in fiscal 2024 from growth in the range of 4 to 6 per cent to an increase of about 10 per cent. The Americas will continue to lead the regional performance, according to the firm, and the Abercrombie brand will continue to beat the Hollister brand. The operating margin is predicted to be approximately 14 per cent, which is an increase over the earlier estimate of approximately 13 per cent.
