Abercrombie & Fitch Reports Strongest First Quarter in Company History

Abercrombie & Fitch has outperformed expectations for first-quarter earnings, with shares jumping more than 10 percent as the company recorded the strongest first quarter in its history Wednesday. The apparel retailer reported a net sales increase of 22 percent year-over-year. Its net income for the three-month period that ended May 4 was $113.9 million. It updated its full-year outlook to a net sales growth of around 10 percent and an operating margin of around 14 percent.

“Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook," said CEO Fran Horowitz. "We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations."

Total Retail's Take: Abercrombie & Fitch has taken many turns in its 130-year history. It most recently transformed itself from the "most hated retailer" in 2016 (according to the American Customer Satisfaction Index) to being named the best performing stock on the S&P index in 2023. The company has reimagined several aspects of its brand, from marketing and supply chain to its target customer and product design, and those efforts are paying dividends.

Abercrombie & Fitch is operating under its "Always Forward Plan," which was released in 2022 and aims to grow the brand globally through a data-driven approach while expanding investments in customer analytics and customer experience.