Abercrombie & Fitch posts ‘record’ Q3 sales, appoints new CFO

American retail giant Abercrombie & Fitch has reported “record” sales for the third quarter of the current fiscal year, reaching 1.2 billion dollars at an increase of 14 percent on the same period of the year prior. Based on what it said was an “outperformance”, the retailer has thus increased its full year outlook.

For the three months ended November 2, 2024, A&F reported comparable sales of 16 percent, while gross profit rate came to 65.1 percent, up around 20 basis points compared to last year. Operating income rose to 179 million dollars, up from the prior year’s 138 million dollars, while net income per diluted share increased from 1.83 dollars to 2.50 dollars.

All regions welcome double-digit growth

Each of the group’s regions grew double-digits over the quarter. The largest growth was seen in the APAC region, where sales rose 32 percent. This was followed by EMEA, where sales were up 15 percent, then the Americas, at an increase of 14 percent. Individual brands also welcomed an uptick. While Abercrombie delivered 11 percent comparable sales on top of 26 percent last year, Hollister posted 21 percent on top of the prior 7 percent.

Commenting on the results, Fran Horowitz, chief executive officer, said: “For the sixth consecutive quarter, our global team delivered double-digit net sales growth. This great sales performance led to better-than-expected results on both the top and bottom lines. With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model.”

As such, the company is raising its full year outlook on sales and now anticipates to be around the high end of the operating margin range shared in the prior quarter. It is expecting net sales to be in the range of 14 to 15 percent.

A&F COO adds CFO role to title

Following the publication of its financials, Abercrombie announced that it had appointed Robert Ball to chief financial officer. Ball will serve on the company’s executive leadership team, reporting to executive vice president and chief operating officer, Scott Lipesky.

Ball brings nearly 22 years of experience to his new role, and had previously served in the CFO position at Abercrombie since 2017, before moving into the role of COO. Abercrombie noted that he would remain in this role, leading the global operations and growth strategies, while also driving financial discipline, capital allocation and efficiency.

Commenting on his promotion, Ball said: "I'm excited to take on the role of CFO at this stage of A&F Co.’s journey. As much as we’ve achieved over the last several years, there is tremendous opportunity ahead. I look forward to continuing to work closely with Fran, Scott and our brand and regional leaders to deliver on our long-term growth ambitions.”