Abercrombie & Fitch Co., the American lifestyle retailer, has announced its Q3 report!
The net sales for the retailer, during the said quarter, fell by 5 per cent to touch US $ 820 million – not surprising considering the impact of pandemic.
The operating income improved to US $ 59 million and US $ 65 million on a reported and adjusted non-GAAP basis, respectively, compared to US $ 14 million and US $ 25 million last year.
The biggest plus for the retailer during the quarter was the 43 per cent jump (US $ 382 million) in digital net sales. Notably, there was strong growth in every month of the quarter.
The gross profit rate too rose to 64 per cent on higher average unit retail and lower average unit cost.
Proud over the performance, Fran Horowitz, CEO, Abercrombie & Fitch Co, said “Updated product and marketing resonated with existing and new customers across brands and regions.”
He added that combined with focused inventory management strategy, Abercrombie & Fitch Co expanded gross profit significantly while continuing to tightly manage the cost.
The company has, at the end of Q3, inventories of US $ 546 million, which is down by 8 per cent compared to what it was a year back.
Notably, the retailer also plans to close 4 more flagship locations by the end of January 2021.