Abercrombie & Fitch has reported its strongest first quarter ever, with sales up 22 %. The transformation the company has gone through in recent years, is clearly paying off.
Working millennials
Many had already given up on the brand, but Abercrombie & Fitch is recovering surprisingly well. Sales rose to 1.02 billion dollars (just under a billion euros) in the first quarter of the fiscal year, compared with 836 million in the same period last year. Net profit even increased sixfold from 16.6 million dollars a year ago to 113.9 million dollars (105 million euros) now.
Abercrombie & Fitch, which also has the Hollister brand in its portfolio, has undergone a major transformation over the past decade. The company, once known for its exclusive image and eye-catching branding featuring scantily clad young people, is now focusing on inclusivity and serving working millennials. This strategic shift has led to a significant improvement in financial performance.
The company already achieved double-digit sales growth in 2023, and this trend continues in 2024. Comparable shop sales were up 21 %, a significant improvement on the 3 % growth in the previous year. The company revised upwards its sales expectations for the current fiscal year, indicating continued confidence in its growth prospects.
