Wednesday, May 31, 2023

Abercrombie grew its sales by 2.8% in the first quarter and returned to profit

Abercrombie, optimistic in 2023. The American conglomerate closed the first quarter (period ending April 29) of the year with a marginal increase in sales compared to 2022. in the same period of the previous year.

The group closed the first months of the year with a turnover of $835.9 million, which is 2.8% higher than in 2022 when it reached a turnover of $812.7 million. Abercrombie’s profit, for its part, has been $17.8 million, compared to the group’s loss of $14 million in the first months of 2022.

The company’s total billings were driven by growth in sales of the group’s same-name brand, which grew 14% to $426 million in the period. Abercrombie’s second largest brand Hollister reported a 7% decrease in turnover compared to the first quarter of 2022, reaching $399.9 million.

Abercrombie grew its namesake brand sales 14%, but Hollister billings decreased 7% during the first quarter

According to Markets, the US company grew its sales in Asia by 11%, establishing itself as the region with the highest growth during the period with sales of $33.3 million. The United States, however, is the largest market for the group in terms of turnover and has reached a turnover of $636 million, representing a growth of 9% compared to the first months of 2022.

In Europe, the Middle East and Africa, the company has projected its sales to decrease by 15% to $139 million, with the group expected to reach $163 million in 2022. Abercrombie, which has more than 700 points of sale worldwide, closed seven Hollister stores during this period, but opened another three.

The company expects Abercrombie to continue to sell more than Hollister, and that the United States will remain its largest market by volume. In addition, it hopes to expand into the retail sector. The company has an Always Forward Plan strategic plan, which aims to reach 5,000 million euros in sales in 2025.

For this year, which will have one more week, the company has improved its outlook and expects to add $45 million in year-end billings in the final week of the year.

Nation World News Desk
Nation World News Desk
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