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The global fashion business journal

24 Jun 201914:14

Abercrombie&Fitch narrows losses in first quarter as sales jump 11%

The American fashion retailer is slowly shifting its direction after going through a long restructuring process. The company’s turnover reached 730.9 million dollars (625,6 million euros).

01 Jun 2018 — 17:00
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Abercrombie&Fitch narrows losses in first quarter as sales jump 11%

 

 

Abercrombie&Fitch gains momentum after the restructuring process. The American fashion retailer has posted positive figures in the first quarter of fiscal 2018. Company sales reached 730.9 million dollars (625.6 million euros), 11% up from the same period of last year, while losses narrowed by 31.9% to 41.8 million dollars (35.7 million euros).

 

The group brands registered a good performance between January and March 2018. Hollister revenues increased by 13% to 423.6 million dollars (362.6 million euros), while Abercrombie sales soared by 7% to 307.3 million dollars (263 million dollars).

 

By markets, revenues in the United States went up 10% year-on-year to 449.1 million dollars (384.4 million euros). International revenues rose 12% to 281.8 million dollars (241.2 million euros).

 

 

 

 

The company plans to open 22 new stores during fiscal 2018, but will also shut down sixty retail units throughout the year in the United States, once commercial rents expire.

 

“Results exceeded our expectations driven by a 5% increase in comparable sales, gross margin expansion, and 460 basis points of expense leverage,” said Fran Horowitz, chief executive officer. “Hollister continued to drive strong sales growth across channels and geographies and Abercrombie built momentum with another quarter of positive comparable sales led by strength in North America”, he added.

 

Abercrombie&Fitch is going through a business model transformation, investing heavily in technology to strengthen both its omnichannel and marketing strategies. Last year, the company went on sale, but the process was cancelled just a few months later.

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