Abercrombie&Fitch closes another year in good shape. The US urban fashion group, which also owns Hollister, ended 2018 with a three-digit increase in its net profit, at the same time that its sales grew at a more moderate rate.
In the last fiscal year (ended on February 2), Abercrombie earned 78.8 million dollars, seven times more than the net profit of 10.5 million dollars recorded the previous year.
The sales of the company, on the other hand, registered a more moderate increase. In 2018, Abercrombie had revenue of 3.59 billion dollars, 3% more. The growth was boosted by the group’s local market, where the income rose by 5% to 2.32 billion dollars.
Abercrombie&Fitch plans to close 40 stores in 2019, mainly in the United States
In the international market, Abercrombie’s sales fell by 1% to 1.26 billion dollars. By chains, Hollister recorded a revenue of 2.15 billion dollars, 6% more than the previous year, while the homonymous chain of the group drop by 1%, to 1.43 billion dollars.
For the financial year 2019, Abercrombie expects a growth of between 2% and 4% and the closure of forty stores, especially in the United States. The company will also continue to reorganize its network of stores with the remodeling of another 85 points of sale.
At the end of the fiscal year 2018, the group had 861 stores around the world, 663 in its local market and 198 in foreign markets. In the last year, Abercrombie closed twenty points of sale and another nine of Hollister, all of them located in the United States.
The urban fashion group began a restructuring process a couple of years ago, which led the company to consider its sale in mid-2017. Last January, Abercrombie expanded its board of directors with two new signings, which became effective on February 3, after closing fiscal year 2018.