Abercrombie & Fitch has delivered record net sales in the fiscal second quarter, which an analyst attributes to the company’s operational flexibility to respond to market changes.
The clothing brand’s net sales grew 21 per cent to US$1.1 billion while net income surged 134.1 per cent to $133.2 million.
Neil Saunders, GlobalData MD, cited the brand’s efforts to make “its supply chains nimbler so that it can chase and quickly respond to emerging fashion trends” as an example of its operational flexibility”.
“This ensures that assortments always look fresh, but more importantly, that they are relevant to shoppers. In turn, this drives sales and helps other dynamics such as visit frequency to stores and online.”
Sales soared 23 per cent to $901.2 million in the Americas and increased 16 per cent to $199.7 million in Europe, Middle East, and Africa. Asia Pacific sales climbed 3 per cent to $33.1 million.
In terms of brands, Abercrombie sales grew 26 per cent, while Hollister sales climbed 17 per cent.
“Although we continue to operate in an increasingly uncertain environment, we remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses,” said A&F CEO Fran Horowitz.
“We are on track and confident in our goal to deliver sustainable, profitable growth this year, while making strategic long-term investments across marketing, digital and technology and stores to enable future growth.”
