- Robyn Turk
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Abercrombie & Fitch Co announced today an increase of net sales to
734 million dollars for its first quarter of the 2019 fiscal year,
which quarter ended on May 4, 2019. While net sales only increased
slightly compared to the same quarter last year, the company
experienced an improved operating loss margin and expects net sales
for the overall year to increase by 2 to 4 percent compared to last
year.
The company noted record first quarter sales in several Hollister
product categories across genders. The Hollister brand also delivered
its tenth consecutive quarter of positive comparable sales. In a
similar note, Abercrombie returned to positive comps, due to
significant trend improvement and record first quarter sales in
dresses, according to a company release.
Of this information, CEO Fran Horowitz said, “This contributed to
top-line growth, operating margin improvement and a net loss reduction
compared to last year.”
Horowitz said that Abercrombie & Fitch Co. will focus on
transformation initiatives this year, which includes global store
network optimization as a “key priority.” The company will continue to
look to an omnichannel brand experience to best meet customers’ needs,
and has therefore announced that it will close more store
locations.
“We are announcing plans to close three additional flagship
locations, bringing the total to five since 2017,” said Horowitz.
“Except for the charges from these flagship store actions, we remain
on track to achieve our previously communicated fiscal 2019 outlook
and continue to lay the foundation to achieving our fiscal 2020
targets.”
