Abercrombie & Fitch posts strong Q1 growth, raises outlook

First quarter net sales at Abercrombie & Fitch of 1 billion dollars, were up 22 percent on a reported basis and constant currency basis with comparable sales up 21 percent.

Gross profit rate of 66.4 percent, rose approximately 540 basis points, operating income increased to 130 million dollars and net income per diluted share rose to 2.14 dollars.

Commenting on the company’s trading update, Fran Horowitz, chief executive officer, said in a release: “Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook. With excellent first quarter performance, we are increasing our full year sales and operating margin outlook.”

For the second quarter of fiscal 2024, the company expects net sales growth to be up mid-teens and operating margin to be in the range of 13 percent to 14 percent compared to 9.6 percent in the second quarter of 2023.

For fiscal 2024, the company now expects net sales to be up around 10 percent, an increase to the previous outlook of growth in the range of 4 percent to 6 percent. The company anticipates Abercrombie brand will continue to outperform Hollister brand and the Americas will continue to lead the regional performance. Operating margin is expected to be around 14 percent, an improvement from the previous outlook of around 12 percent.