Abercrombie & Fitch Co. (ANF) has reported its strongest first quarter in the company's history, with net sales reaching $1 billion and operating income climbing to $130 million, marking a 22% increase in sales year-over-year. The company's clean inventory approach has led to fewer promotions and an improved gross profit rate.
Operating margin stood at 12.7% for the quarter. Looking ahead, Abercrombie & Fitch anticipates continued investments in marketing, digital and technology, and global expansion, setting the stage for sustainable, profitable growth and confidence in meeting its 2024 targets.
Key Takeaways Abercrombie & Fitch achieved a historic first quarter with $1 billion in net sales and a 12.7% operating margin. Sales grew by 22% compared to the previous year, driven by strong performance across all regions, brands, and direct channels.
The company introduced a new performance measure, non-GAAP EBITDA, totaling $168 million in Q1. Operating expenses increased, with marketing expenses rising to 5% of sales. Abercrombie & Fitch ended the quarter with $864 million in cash and $1.
2 billion in liquidity. The company expects mid-teen net sales growth in Q2, with a full-year growth estimate of around 10%. Operating margin is projected to be between 13% to 14% for Q2 and about 14% for the full year.
Company Outlook Abercrombie & Fitch plans to continue investing in marketing, digital and technology, and global expansion. The company aims to maintain a clean inventory positio.