Abercrombie & Fitch announces Q1 results, plans 3 store closures
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."