US clothing retailer Abercrombie & Fitch's FY20 digital sales grow 39%

04 Mar '21

2 min read

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Abercrombie & Fitch, a US-based specialty retailer of apparel and accessories through three renowned brands, has reported 14 per cent sales decline to $3.1 billion in its full fiscal 2020 ended on February 1, 2021 compared to sales of $3.6 billion in the previous fiscal. However, digital sales during FY20 jumped 39 per cent to $1.7 billion.

“For the year, we made significant progress on our key transformation initiatives. We leaned into our infrastructure to grow digital to 54 per cent of annual revenues while utilising our lease flexibility to take approximately 1.1 million gross square feet, or 17 per cent, out of our base, including eight tourist-dependent flagships,” Fran Horowitz, chief executive officer at Abercrombie & Fitch, said in a press release.

Gross profit for the year was $1.8 billion (FY19: $2.1 billion). Company reported an operating loss during FY20 of $20.4 million (operating income: $70.0 million), and net loss of $114.0 million (net income: $39.3 million).

Sales of Hollister brand slipped 15 per cent to $1.8 billion ($2.1 billion). While Abercrombie sales dropped 12 per cent to $1.3 billion ($1.4 billion).

Sales in all the regions that Abercrombie & Fitch serves, decreased during FY20: US sales fell 12 per cent to $2.1 billion ($2.4 million), EMEA sales dipped 14 per cent to $709.4 million ($822.2 million), APAC sales plunged 33 per cent to $176.6 million ($264.8 million), and International sales declined 18 per cent to $997.9 million ($1.2 billion).

“As we enter 2021, we are pleased with our start to the first quarter and have proven strategies in place to build on recent successes in product, marketing and digital. Our solid foundation and strong liquidity position enable us to be on the offense as we continue to focus on profitable topline growth, square footage optimisation, digital transformation and global market share gains,” Horowitz said.

Fibre2Fashion News Desk (JL)

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