The Company Continues to Enjoy Growth Each Quarter, Nearing a Possible $5 Billion in Annual Sales
Abercrombie & Fitch Co. has reported a series of quarterly sales gains and now targets a net sales growth of 12 to 13 percent in 2024. Achieving this goal would grow the company’s annual volume to $4.82 billion from $4.3 billion in 2023, bringing it closer to surpassing $5 billion in annual sales. In 2023, Abercrombie & Fitch Co. experienced their best operating margin in 15 years and a year-over-year sales increase.
Abercrombie & Fitch Co.’s Chief Executive Officer, Fran Horowitz remarked, “Although we continue to operate in an increasingly uncertain environment, we remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses.”
Horowitz affirmed that the company is on track and confident in its goal to deliver sustainable, profitable growth this year. She stated plans for strategic long-term investments across marketing, digital and technology, and stores to enable future growth. “We’re continuing to look for opportunities to grow our business around the world,” added Horowitz.
As Abercrombie & Fitch Co. plans to receive the WWD Honor for Company of the Year, Public, Neil Saunders, managing director of retail at GlobalData, applauded the modern company’s ability to resonate with consumers, owing to the brand transformation under Fran Horowitz and her team. He affirmed that Abercrombie’s positive momentum would keep it on a growth trajectory, especially as it continues to win new customers and add market share.
The retailer spans across Abercrombie, Abercrombie kids, Hollister, and Gilly Hicks brands, has succeeded in becoming an inclusive brand, recognized for its popular influencer and affiliate programs, streamlining and updating store designs, differentiating its brands to appeal different age groups, and enhancing responsiveness to emerging fashion trends and consumer preferences.
The company’s “Always Forward Plan” launched in 2022, promises accelerated investments in customer analytics, new inventory practices, and leveraging omnichannel capabilities. Abercrombie recently partnered with Haddad Brands, specializing in children’s apparel, to expand Abercrombie’s kids’ distribution. “Our brands are stronger than ever, and an opportunity to partner to grow kids…just speaks to long-term opportunities ahead for us”, said Horowitz.
Pricing and promotion adjustments, competition from other retailers such as Macy’s, Madewell, Uniqlo, H&M, and Zara and changing consumer spending patterns will be key factors influencing Abercrombie’s future success. Retail experts and Wall Street analysts remain bullish on Abercrombie & Fitch Co.’s prospects for future growth. Zacks, an investor research firm reported Abercrombie & Fitch Co.’s bottom line is projected to rise by 63.4% year-over-year for 2025.
“The A&F resurrection is one of the most impressive retail stories in decades,” observed Steve Dennis, author, and president of SageBerry Consulting. However, he also predicted difficulty in maintaining recent impressive results due to large numbers and competitive responses.
While Abercrombie & Fitch Co. is currently a success story, the recent arrest of former CEO Mike Jeffries for sex trafficking and prostitution charges has cast a shadow on the brand. However, both Dennis and Saunders believe these charges will have minimal long-term impact on the brand as they belong to past era of Abercrombie.
In response to Jeffries arrest, Abercrombie & Fitch Co. issued a statement expressing their disgust at his alleged behavior, reminding that his employment with the company ended nearly 10 years ago.