Abercrombie & Fitch’s Remarkable Comeback: Highest First-Quarter Earnings in Company History
Abercrombie & Fitch is making waves in the retail industry with its latest achievement – the highest first-quarter earnings in company history. The iconic brand reported a 22% year-over-year increase in sales, reaching $1.02 billion in the first quarter of 2024, compared to $836 million during the same period last year. Operating income also hit a record high of over $131 million.
CEO Fran Horowitz attributed the success to the power of the company’s brands and the execution of their global playbook. By focusing on relevant assortments, compelling marketing strategies, agile chase capabilities, and inventory discipline, Abercrombie & Fitch was able to exceed sales expectations.
The company has also raised its full-year revenue outlook to around 10% and its operating margin outlook to nearly 14%. This positive outlook reflects the brand’s continued growth and success under Horowitz’s leadership since 2017.
Abercrombie & Fitch has undergone a transformation in recent years, moving past controversies highlighted in the 2022 documentary “White Hot: The Rise & Fall of Abercrombie & Fitch.” The company has redefined its brand identity, focusing on each brand’s specific voice and customer base, which includes Abercrombie & Fitch, Abercrombie Kids, Hollister, and Gilly Hicks Active.
The launch of “The Wedding Shop” during Q1 was also a success, offering a curated selection of apparel for various wedding-related events. The company’s decision to remove its iconic moose logo in 2014 signaled a new era for the brand, emphasizing a more subtle and sophisticated approach to branding.
With Abercrombie & Fitch’s stock soaring by 18% in a 24-hour period, it’s clear that the brand’s comeback story is far from over. The company’s focus on growth and customer experience sets the stage for continued success in the years to come.