Abercrombie & Fitch Q4 comparable sales increase 16 percent

Abercrombie & Fitch’s net sales for the fourth quarter of 1.5 billion dollars were up 21 percent on a reported and constant currency basis with comparable sales up 16 percent.

Full year net sales of 4.3 billion dollars were up 16 percent on a reported basis and on a constant currency basis, while comparable sales increased 13 percent.

Commenting on the company’s financial results, Fran Horowitz, chief executive officer, said in a statement: “I am incredibly proud of how we performed throughout fiscal 2023, finishing with fourth quarter year-over-year net sales growth of 21 percent, which exceeded our January business update expectations. This year, our goal is to deliver sustainable, profitable growth while making the necessary investments to build and support our longer-term ambition of 5 billion dollars in global sales.”

Review of Abercrombie & Fitch Q4 and full year results

Gross profit rate for the quarter of 62.9 percent, was up 720 basis points as compared to last year. Operating income rose to 223 million dollars, while net income per diluted share increased to 2.97 dollars.

For the full year, gross profit rate of 62.9 percent, was up approximately 600 basis points as compared to last year. Operating income increased to 485 million dollars and 489 million dollars on a reported and adjusted non-GAAP basis, respectively.

Net income per diluted share also increased to 6.22 dollars and 6.28 dollars on a reported and adjusted non-GAAP basis, respectively.

Abercrombie & Fitch expects FY24 sales to increase between 4 to 6 percent

For fiscal 2024, the company expects net sales growth in the range of 4 percent to 6 percent from 4.3 billion dollars in fiscal 2023. The company expects Abercrombie brand will continue to outperform Hollister brand and the Americas will continue to lead the regional performance.

Operating margin is forecasted to be around 12 percent, compared to an adjusted operating margin of 11.4 percent in fiscal 2023.

For the first quarter of fiscal 2024, the company expects net sales to be in the low double-digits and operating margin to be in the range of 8 percent to 10 percent.