Abercrombie & Fitch’s sales rose 10% in the third quarter.
Abercrombie & Fitch Co. reported better-than-expected third-quarter earnings and sales with both top and bottom-line gains.
The apparel retailer’s net income totaling $47.2 million, or $0.77 per share, in the quarter ended Oct. 30, up from $42.3 million, or $0.66 per share, in the year-ago period. Adjusted earnings per share of $0.86 blew past analysts’ forecasts of $0. 66.
Sales rose 10% to $905.2 million, ahead of estimates of $895.0 million, compared to last year, and were up 5% compared to the third quarter of 2019.
By brand, Abercrombie’s quarterly sales rose 12% to $382.85 million, and were up 10% from the same period in 2019. Hollister’s quarterly sales rose 10% to $522.31 million and were up 1% from the same period in 2019. (Hollister includes the Hollister, Gilly Hicks, and Social Tourist brands.) In July, Abercrombie unveiled a new standalone store concept for Gilly as part of a larger revamp for the intimates and activewear brand towards gender-inclusivity.
Digital sales grew 8% over the year-ago quarter and increased 55% compared to the same time in 2019.
“The start of the holiday season has been promising,” said CEO Fran Horowitz. “Customers have come out early to shop and have been responding well to assortments. 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.”
The retailer ended the quarter with a total of 735 stores, including 199 international locations.