Summary Abercrombie & Fitch Management Co. has increased its fourth quarter net sales growth outlook to a range of 7-8% from the prior range of 5-7%. The company has also raised its full year net sales growth outlook to around 15% from the previous range of 14-15%. The updated outlook reflects the strong performance of Abercrombie & Fitch's brands, with record quarter-to-date net sales and a robust operating margin. The company attributes its success to its customer-driven brand strategy, successful regionally relevant brand playbooks, and a strong omnichannel base.
Business Update and Outlook
Abercrombie & Fitch Co. has provided an update on its business performance for the fourth quarter and full year of fiscal 2024. According to Fran Horowitz, Chief Executive Officer, the company delivered record quarter-to-date net sales, exceeding expectations provided in November. Total net sales growth was driven by comparable sales across regions and brands during the holiday selling period.
"We are proud of our team's hard work and dedication to delivering sustainable, profitable growth in 2024," said Horowitz. "We expect to complete the year with net sales growth around 15% and a strong operating margin around 15%. Our customer-driven brand strategy has paid off, and we are confident that our strong foundation will support continued growth and success."
Abercrombie & Fitch's updated outlook reflects its commitment to sustainable, profitable growth. The company is focused on executing its strategic initiatives, including the Always Forward Plan, which aims to drive long-term value for shareholders.
Always Forward Plan
The Always Forward Plan is a comprehensive strategy aimed at driving long-term value for Abercrombie & Fitch's shareholders. The plan includes several key initiatives, such as:
- Healthy, customer-driven brands with distinct and large addressable markets
- Successful, regionally relevant brand playbooks designed to attract, engage, retain, and scale long-term customer relationships
- Significant global growth opportunity leveraging leading capabilities in owned and operated channels while pursuing new markets via franchise, wholesale, and licensing partnerships
- Strong omnichannel base with a clean and highly profitable expanding store fleet enhanced by a leading digital platform
- Agile "Read & React" inventory model to support customer demand and sustainable margins
- Durable balance sheet and consistent free cash flow profile underpinned by a disciplined investment philosophy to maximize long-term value
- Strong culture driven by a winning, customer-obsessed team
The Always Forward Plan is designed to drive long-term growth and profitability for Abercrombie & Fitch. The company is committed to executing this plan and delivering sustainable, profitable growth in the years ahead.
2025 ICR Conference
Abercrombie & Fitch will be participating in meetings with investors and analysts at the 2025 ICR Conference. Chief Executive Officer Fran Horowitz, Chief Operating Officer Scott Lipesky, and Chief Financial Officer Robert Ball are scheduled to participate in a fireside chat at the conference on Monday, January 13th at 10:00 AM EST.
The audio portion of the fireside chat will be webcast live over the internet and can be accessed via the company's website. A replay will be available on the company's website for a period of 90 days following the conclusion of the presentation.
Safe Harbor Statement
This Press Release and related statements by management or spokespeople of Abercrombie & Fitch Co. contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including without limitation, statements regarding our fourth quarter and annual fiscal 2024 results, relate to our current assumptions, projections, and expectations about our business and future events.
Any such forward-looking statements involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company's control. The inclusion of such information should not be regarded as a representation by the company or any other person that the objectives of the company will be achieved.
Words such as "estimate," "project," "plan," "goal," "believe," "expect," "anticipate," "intend," "should," "are confident," "will," "could," "outlook," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements.
Use of GAAP and Non-GAAP Measures
The company references comparable sales, defined as the percentage year-over-year change in the aggregate of:
- Sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation.
- Digital net sales with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation.
Other Information
This press release is available at corporate.abercrombie.com. Important information may be disseminated initially or exclusively via the website: investors should consult the site to access this information.
As used in this document, unless otherwise defined, "Abercrombie brands" refers to Abercrombie & Fitch and abercrombie kids, and "Hollister brands" refers to Hollister and Gilly Hicks. Additionally, references to "Americas" include North America and South America, "EMEA" includes Europe, the Middle East, and Africa, and "APAC" includes the Asia-Pacific region, including Asia and Oceania.
About Abercrombie & Fitch Co.
Abercrombie & Fitch Co. (NYSE: ANF) is a global, digitally led omnichannel specialty retailer of apparel and accessories catering to kids through millennials with assortments curated for their specific lifestyle needs.
The company operates a family of brands, including Abercrombie & Fitch and Hollister each sharing a commitment to offer products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are.