Abercrombie & Fitch revenue growth driven by domestic sales in Q3

By

Robin Driver

Published
Nov 23, 2021

American fashion retailer Abercrombie & Fitch Co. reported third-quarter net sales of $905.2 million on Tuesday, a figure that represented an increase of 10% compared to $819.7 million in the prior-year period, led by a 17% rise in the United States, the company’s largest market.

 
In the third quarter ended October 30, 2021, the company’s net sales totaled $654.9 million in the U.S., compared to $557.8 million in the same period in the previous year.
 
International sales, on the other hand, fell 4% from $261.8 million in Q3 2020 to $250.3 million in Q3 2021. This reflected a 6% decline in Europe, the Middle East and Africa (EMEA), where sales totaled $179.2 million, and a 12% decrease in the Asia-Pacific region, where quarterly revenues were $38.2 million, offset somewhat by an 18% rise in the company’s “other” sales, which totaled $32.9 million.

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Broken down by brand, the group’s sales growth was fairly consistent. The company’s Hollister segment, which includes the Hollister, Gilly Hicks and Social Tourist brands, saw its sales rise 10% year over year, from $476.7 million to $522.3 million. In parallel, the group’s Abercrombie segment, which includes its namesake Abercrombie & Fitch and Abercrombie Kids brands, posted sales of $382.8 million, up 12% from $343.0 million in the prior-year period.
 
Compared to the pre-Covid-19 third quarter of 2019, when Abercrombie & Fitch Co.’s revenues were $863.5 million, total company Q3 net sales increased 5%.
 
Digital sales for the quarter totaled $413 million, representing growth of 8% compared to the prior-year period and 55% compared to the same period two years ago.
 
Quarterly net income at the group totaled $47.2 million, or $0.77 per diluted share, compared to $42.3 million, or $0.66 per diluted share, in Q3 2020.
 
Year to date, Abercrombie & Fitch reported net income of $197.5 million, or $3.10 per diluted share, compared to a loss of $196.4 million, or $3.14 per diluted share, a year before. Net sales for the nine-month period were $2.55 billion, up 27% compared to $2.00 billion.
 
“We were very pleased with our third quarter results,” said Abercrombie & Fitch CEO Fran Horowitz in a release. “The start of the holiday season has been promising. Customers have come out early to shop and have been responding well to assortments,” she added, providing an optimistic snapshot of the initial weeks of the fourth quarter.
 
“We continue to actively manage through ongoing supply chain constraints, including production and delivery delays and elevated costs, and are confident that we have the product, marketing voice and omnichannel experience to surprise and delight new and existing customers throughout the fourth quarter,” concluded the executive.
 
Abercrombie & Fitch currently operates more than 730 stores around the world.