Abercrombie & Fitch has reported continued sales uplift in the fourth quarter, which an analyst described as “another stellar set of numbers”.
The company’s net sales were up 9 per cent to US$1.58 billion in the quarter ended February 1, with comparable sales up 14 per cent.
According to GlobalData MD Neil Saunders, the company has delivered “another stellar set of numbers” despite this quarter having one fewer trading week compared to the year-ago period.
“Both sales figures are significantly above the overall market, which underscores the fact that Abercrombie & Fitch is still picking up an extensive amount of market share,” he explained.
At the Abercrombie brand, sales increased 2.3 per cent, with comparables rising 5 per cent. At Hollister, sales soared 16.4 per cent, with comparables up 24 per cent.
Saunders said the assortments of both brands over the holiday period were strong, adding that the quality of products was also an advantage as it created a sense of value and justified higher price points.
By region, net sales rose 11 per cent in the Americas and 2 per cent in EMEA but decreased 4 per cent in Apac. Meanwhile, comparable sales soared 15 per cent in the Americas, 12 per cent in EMEA and 17 per cent in Apac.
For the full year, the company reported a 16 per cent uplift in net sales and 17 per cent increase in comparable sales.
Saunders said this is one of the best performances of a mainstream company in retail. Since 2019, sales at the business have increased by 36.6 per cent, he added.
The company expects sales to grow 4-6 per cent in the first quarter of FY25 and 3-5 per cent for the full year.
Saunders said the moderation in growth is reasonable as market conditions in the US are becoming more challenging.
“We take a firm view that this should not be seen as a failure, but as a mathematical reality that growth from a much higher base produces lower percentage increases,” the analyst elaborated.
