US apparel retailer Abercrombie & Fitch second quarter sales surge 24%

30 Aug '21

2 min read

Pic: Abercrombie & Fitch

Abercrombie & Fitch, a US-based specialty retailer of apparel and accessories, has reported a 24 per cent sales jump to $864.8 million in the second quarter (Q2) of FY21 ended on July 31, 2021, against $698.3 million in the corresponding period of the previous fiscal. Net income for the period significantly surged to $110.4 million (Q2 FY20: $5.8 million).

“As our customers’ mindset shifted to summer, we continued to deliver on product, voice and experience. Our largest market, the US, had healthy net sales growth of 31 per cent on a one-year and 11 per cent on a two-year basis,” Fran Horowitz, chief executive officer at Abercrombie & Fitch, said in a press release.

By brand, sales of Hollister which includes Hollister, Gilly Hicks and Social Tourist brands, escalated 20 per cent to $514.5 million. While Abercrombie brand including the Abercrombie & Fitch and abercrombie kids brands improved 30 per cent to $350.3 million over the same quarter last year ended on August 1, 2020.

Moreover, the company's sales increased across all the regions during the second quarter except APAC which recorded marginal fall. Sales from the US expanded 31 per cent to $601.7 million, while Europe, the Middle East and Africa (EMEA) region sales rose 11 per cent to $190.8 million. The Asia-Pacific (APAC) region recorded 1 per cent decline to $41.2 million, and other region sales increased 17 per cent to $31.0 million.

“Momentum has continued quarter-to-date. We have had a strong start to the US back-to-school season. Reception to the Gilly Hicks brand relaunch, associated product, and updated store experiences has been very positive. At our newest brand, Social Tourist, we are excited about our learnings and results since its launch just three months ago,” Horowitz added.

The American retailer’s digital sales in the Q2 dropped 3 per cent over 2020. Gross profit in the three-month period climbed to $1.0 billion, whereas operating income grew to $172.2 million against operating loss of $194.9 million during Q2 FY20.

“Looking ahead, we will remain on offense and are confident that the proactive steps we have taken to evolve our operating model and cost structure, combined with evolved brand positioning, should continue to yield near and long-term benefits,” Horowitz concluded in the release.

Fibre2Fashion News Desk (JL)

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