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Abercrombie & Fitch continues to be a robust comeback story because the retailer simply posted the best first-quarter earnings in firm historical past.
Throughout a Q1 2024 earnings name this week, Abercrombie & Fitch reported a 22% year-over-year enhance in gross sales, ending the quarter at $1.02 billion in comparison with $836 million on the similar time final yr. Working revenue exceeded $131 million, additionally a report excessive for the corporate.
"Our excellent first quarter outcomes replicate the ability of our manufacturers and powerful execution of our world playbook," mentioned CEO Fran Horowitz in an earnings release. "We efficiently navigated seasonal transitions with related assortments and compelling advertising, leveraging agile chase capabilities and stock self-discipline, driving gross sales above our expectations."
Associated: Abercrombie & Fitch Reports Strong Earnings, Stock Soars
The corporate additionally elevated its full-year income outlook to "round 10%" and its working margin outlook to just about 14%.
At its top within the '90s and aughts, gross sales have been in the billions, however recognition quickly waned and worker complaints started piling up. Netflix coated the controversies within the 2022 documentary, "White Sizzling: The Rise & Fall of Abercrombie & Fitch," which uncovered the corporate's previous scandals and accusations of exclusionary practices below former CEO Mike Jefferies.
However after a robust previous few years since 2017 below Horowitz's management, the corporate has turned issues round. Horowitz credited the corporate's capacity to outline what every of the corporate's "manufacturers stands for and the purchasers they serve" by honing in on every model's particular voice and stock that aligns with that. The model umbrella consists of Abercrombie & Fitch, Abercrombie Children, Hollister, and Gilly Hicks Lively.
"Each model households are contributing properly to our enterprise outcomes whereas increasing our buyer base by elevated advertising spend and improved omnichannel buyer expertise," Horowitz said on the earnings call. "These are merely excellent outcomes, including yet one more proof level of our world workforce's capacity to execute on the highest commonplace. At all times wanting ahead, we're laser-focused on displaying continued development by 2024."
Abercrombie additionally touted the success of launching "The Wedding ceremony Store" throughout Q1, which Horowitz described as a "curated set of clothes and different attire to outfit out prospects for bachelorette events to honeymoons to the large day itself."
"We led The Wedding ceremony Store with a mixture of types, together with new style gadgets, whereas additionally showcasing product that has carried out and grown over a number of seasons," Horowitz mentioned. "I am excited by the continued alternatives for The Wedding ceremony Store as we method peak marriage ceremony season this summer time and into the autumn."
The corporate additionally removed its notorious moose emblem in 2014, which signaled a brand new period for the model lengthy recognized by its loud emblem printing and branding.
Associated: Abercrombie & Fitch Holiday Sales Rise After Rebrand
As of Wednesday morning, Abercrombie & Fitch was up an 18% in a 24-hour interval.
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