🌟 Record Q3 Sales Growth
Abercrombie & Fitch Co. reported an impressive Q3, with net sales reaching $1.2B, a 14% increase from last year. Comparable sales climbed 16%, and net income rose 37% to $133.9M. Abercrombie’s net sales rose 15% to $629.8M, while Hollister achieved 14% growth to $579.1M. Despite weather disruptions like hurricanes, the company maintained strong momentum. Gross margins also improved, hitting 65.1%, marking the best Q3 margin since 2010. Analysts credited reduced promotions and strong customer traffic as key drivers.
📈 Robust Full-Year Outlook
Building on this momentum, Abercrombie raised its full-year outlook, now anticipating 14%-15% net sales growth versus its prior estimate of 12%-13%. The company is also expanding strategically, planning to open 60 new stores (40 Abercrombie and 20 Hollister), close 40 locations, and complete 60 remodels by year-end. CEO Fran Horowitz highlighted strong sales across genders, regions, and categories, emphasizing the brand’s closeness to customers and a steady flow of new products.
👔 Leadership Transition
The company announced Robert Ball’s promotion to CFO on Nov. 20. Ball, a company veteran since 2003, previously led finance roles for Abercrombie and Abercrombie Kids. He succeeds Scott Lipesky, who transitioned to COO after serving as CFO from 2017 to 2023. Horowitz praised Ball’s contributions to the company’s turnaround, describing him as “uniquely qualified” to drive future strategies forward. Ball will report directly to Lipesky in his new role.
🌍 Resilience Amid Challenges
Despite hurricanes and flooding in Q3, Abercrombie continued to deliver, showcasing resilience. William Blair analysts noted steady gross margin improvements, though they expect tempered growth for the remainder of the year. Horowitz celebrated the best Q3 results in over a decade, saying, “This performance reflects our closeness to the customer and balanced growth across categories.” The company’s strategic planning and leadership evolution position it for sustained success in 2024 and beyond.
Is Abercrombie’s resurgence a lasting trend?
