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Abercrombie & Fitch has seen its turnover and profit rise spectacularly in the first quarter. The American fashion company is thus continuing the momentum of the second half of last year.
More than half online
“The first quarter is proof that our shift to a digitally-led global business model is working,” said CEO Fran Horowitz in a note accompanying the quarterly results. Abercrombie & Fitch recorded a 61 per cent increase in revenue to 781 million dollars (640 million euros) in the three months to 1 May. Operating profit totalled 57 million dollars (50 million euros), the best result in the first quarter since 2008. In the same period last year, there was still a loss of 209 million dollars.
The spectacular increase is, of course, primarily attributable to the weak basis for comparison, but there is also a 6 per cent growth compared to 2019. However, the total retail surface of the brand has decreased by a fifth. Online in particular is doing well: digital revenue rose by 45 per cent and now accounts for more than half of overall sales.
The brand will continue to optimise its store network, replacing larger stores with smaller ones focusing on local customers. In that regard, the company closed its Singapore branch in the first quarter. This leaves the retailer with six flagship stores, down from fifteen at the beginning of last year.
