Abercrombie & Fitch Co. reported net sales of 880 million dollars, down 3 percent on a reported basis and approximately flat on a constant currency basis.
Gross profit rate of 59.2 percent, was down approximately 450 basis points as compared to last year. The company said, net loss per diluted share was 4 cents on a reported basis and 1 cents on an adjusted non-GAAP basis compared to net income per diluted share last year of 77 cents and 86 cents on a reported and adjusted non-GAAP basis, respectively.
The company also announced a change in its board of directors as part of a leadership transition. The company added that After five years in the position and in connection with his plans to retire as a director, Terry Burman will step down as chairperson of the board at the conclusion of the company’s fiscal year ending on January 28, 2023.
Nigel Travis, current director and chair of the nominating and governance committee, will assume the role of Chairperson effective January 28, 2023.
Commenting on the third quarter trading, Fran Horowitz, CEO of the company said: “We were pleased to see year-over-year sales trends improve across brands in light of the global macroeconomic environment. Results were driven by Abercrombie brands where we delivered the highest Q3 net sales since 2014 and the tenth consecutive quarter of average unit retail growth.”
Abercrombie & Fitch expects full year sales to be down 2 to 3 percent
For fiscal 2022, the company now expects net sales to be down in the range of 2 to 3 percent from 3.7 billion dollars in 2021. This compares to the previous outlook of down mid-single-digits.
For the fourth quarter, the company expects net sales to be down in the range of 2 to 4 percent to fiscal fourth quarter 2021 level of 1.2 billion dollars.
Nigel Travis to replace Terry Burman as Abercrombie & Fitch board chairperson
Burman, the company further said, joined the board in January 2014 and was appointed non-executive chairperson in February 2018. Travis joined the board as an independent director in February 2019.
“On behalf of our board, executive management team and Abercrombie & Fitch Co. associates, I’d like to thank Terry for all his contributions to the company’s transformation over the past several years. I’m confident in Nigel’s ability to help guide us through our next chapter as we continue to transform and position the company for future growth,” added Horowitz.
Travis has served in executive leadership roles at several global companies within the retail and restaurant industries. A longtime leader at Dunkin Brands Group, Inc., including through its IPO in 2011, he served as CEO (January 2009 to July 2018) and executive chairman of the board (May 2013 to December 2018) until transitioning to non-executive chairman (January 2019 to December 2020).
He also served as president and CEO and on the board of Papa John’s International (2005 to 2008), and in roles of increasing responsibility at Blockbuster, Inc., including president and COO (1994 to 2004).
Travis also currently serves as on the board of directors of Advance Auto Parts, Inc. (August 2018 to present).
Commenting on his new role at the company, Travis said: “It has been a privilege to serve on the board with Terry since I joined in 2019. Under his leadership, the company has made incredible progress. I’m excited to partner with Fran and the team to continue moving the company forward.”