Fran Horowitz, the CEO of Abercrombie & Fitch, is clearly in a good mood these days. She was able to tell her company’s investors that they not only made a lot of money but set sale records in the third quarter of 2021.
“The start of the holiday season has been promising. Customers have come out early to shop and have been responding well to assortments,” A
CNBC reported that Abercrombie & Fitch’s net sales rose 10% to $905.2 million, beating estimates of $896.9 million. It also announced a new $500 million share repurchase plan.
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In an earnings call, Fran Horowitz told Abercrombie & Fitch investors, “We delivered our best third quarter operating profit and margin in close to a decade.”
Total sales rose 10% over year 2020 and were up 5% to Q3 2019. The company achieved its highest Q3 sales since 2014 despite industry-wide supply chain constraints and removal of 1.1 million gross square feet from their store base last year. Its largest and most established market, the U.S. outperformed with sales up 17% on a 1-year and 12% on a 2-year basis.
Horowitz went on to say that she thought that it was wonderful to have more kids return to school and that as social activities resume for kids, teens and millennial customers Abercrombie & Fitch executed well against the back-to-school and fall calendar, providing seasonally appropriate newness and outfitting options. “With compelling interpretations of the latest fashion trends including water leg silhouettes, vegan leather and seamless bodysuits, all while maintaining the quality, fit and value that we have become known for,” she said.
“Our customers were highly engaged as illustrated by our average basket size and lapsed customer rate of return, both of which improved in the double-digit percent range,” added Horowitz. “In addition, we also acquired roughly 2 million new customers globally, all very positive signs regarding the health of our brands.”