• Home
  • News
  • Business
  • Abercrombies & Fitch Q4 sales up, earnings decline

Abercrombies & Fitch Q4 sales up, earnings decline

By Prachi Singh

loading...

Scroll down to read more

Business

Image: Abercrombie & Fitch

For the fourth quarter, Abercrombie & Fitch net sales of 1.2 billion dollars, were up 3 percent on a reported basis and 5 percent on a constant currency basis.

For the full year, net sales of 3.7 billion dollars remained approximately flat on a reported basis and up 2 percent on a constant currency basis.

Net income per diluted share was 75 cents and 81 cents on a reported and adjusted non-GAAP basis, respectively, compared to 1.12 dollars and 1.14 dollars, respectively.

Full year net income per diluted share was 5 cents and 25 cents on a reported and adjusted non-GAAP basis, respectively, compared to 4.20 dollars and 4.35 dollars, respectively last year.

Commenting on the financial results, Fran Horowitz, the company’s chief executive officer, said: “Results were driven by continued, strong momentum in the Abercrombie & Fitch brand and sequential improvement in Hollister as we continue to stabilise the brand’s performance. As we look to 2023, we remain cautiously optimistic on consumer demand. Our Abercrombie & Fitch brand continues to be a leader in the industry, and multiple actions we have taken in the Hollister brand are resulting in sequential net sales trend improvement.”

Fourth quarter gross profit rate of 55.7 percent, was down 260 basis points, operating income was 87 million dollars and 92 million dollars on a reported and adjusted non-GAAP basis, respectively, compared to 98 million dollars and 100 million dollars last year.

Gross profit rate for the year of 56.9 percent, was down approximately 540 basis points, while operating income was 93 million dollars and 107 million dollars on a reported and adjusted non-GAAP basis, respectively compared to 343 million dollars and 355 million dollars, respectively last year.

For fiscal 2023, the company expects net sales growth in the range of 1 to 3 percent from 3.7 billion dollars in 2022 with the expectation that Abercrombie will continue to outperform Hollister and the U.S. will continue to outperform international. Operating margin is expected to be in a range of 4 to 5 percent, which includes a benefit of around 200 basis points from full year 2022 levels.

For the first quarter of fiscal 2023, the company expects net sales to be around flat to fiscal first quarter 2022 level of 813 million dollars and operating margin to be in the range of breakeven to 2 percent compared to negative 1 percent in Q1 2022 period.

Abercrombie
Abercrombie & Fitch
HOLLISTER