US-based apparel retailer Abercrombie & Fitch has registered a highly profitable third-quarter financial result. The company’s net sales for the third quarter went up by 14 per cent to US $ 1.2 billion.
The company’s net sales were majorly driven by the strong comparable sales growth of 16 per cent. Key factors contributing to this robust performance include broad-based growth across regions and brands. Both Abercrombie and Hollister brands experienced double-digit comparable sales growth.
Despite facing challenges such as higher freight costs and a volatile shipping market, the company managed to improve its gross profit margin to 65.1 per cent. Operating income also saw a significant increase to US $ 179 million.
Encouraged by this strong performance, Abercrombie & Fitch has raised its full-year sales and operating margin outlook. The company expects net sales to grow by 14-15 per cent and an operating margin of around 15 per cent. To capitalise on its momentum, the retailer plans to expand its store footprint, particularly in key markets like Greater London and international locations.
