Abercrombie & Fitch Q3 FY24 Sales Rise 14% YoY to $1.2 Billion

Abercrombie & Fitch has reported impressive growth in its latest quarterly earnings, showcasing a 14 percent year-over-year increase in sales, reaching $1.2 billion for the third quarter of fiscal 2024, which concluded on November 2. The brand also noted a strong performance in comparable sales, which rose by 16 percent during the same period. This surge in revenue contributed to a net income of $132 million, translating to earnings per share of $2.50, up from $96.2 million, or $1.83 per diluted share, in the prior fiscal year.

For the first nine months of fiscal 2024, Abercrombie & Fitch’s sales climbed 19 percent year-over-year to $3.36 billion, and net income reached $379 million. The retailer has adjusted its full-year sales growth projections to a range of 14 to 15 percent, a notable jump from earlier estimates of 12 to 13 percent. Looking ahead to the fourth quarter, the company anticipates sales growth between 5 and 7 percent.

CEO Fran Horowitz expressed confidence in the company’s performance, stating that this marks the sixth consecutive quarter of double-digit sales growth fueled by broad-based achievements across various regions and brands. The Americas saw a 14 percent increase, Europe, the Middle East, and Africa (EMEA) rose by 15 percent, while the Asia-Pacific (APAC) region led with an impressive 32 percent growth.

Horowitz also highlighted that both Abercrombie and Hollister brands performed well, with comparable sales at 11 percent and 21 percent, respectively, building on the previous year’s successes. Gross profit margins improved slightly, and operating income rose to $179.3 million, reflecting strong operational efficiencies and effective cost management.

During the nine-month period, the company reported a gross profit of $2.2 billion, equating to 65.4 percent of net sales, a significant improvement from 62.9 percent in the previous fiscal year. Operating income skyrocketed to $484.8 million, nearly doubling from $261.9 million last year, aided by lower costs and a reduction in sales-related expenses.

Looking forward, Abercrombie & Fitch’s revised outlook for fiscal 2024 now includes an expected operating margin near 15 percent and a capital expenditure estimate of approximately $170 million. The company remains committed to its strategic objectives and continues to thrive in a competitive retail landscape.