Abercrombie & Fitch targets revenues of 4.1 to 4.3 billion dollars by FY2025
As part of its Always Forward Plan, Abercrombie & Fitch Co. anticipates annual revenues of 4.1 billion dollars to 4.3 billion dollars and an annual operating margin rate at or above 8 percent by the end of fiscal 2025.
In the longer-term, the company believes it can reach 5 billion dollars of annual revenues and an annual operating margin rate at or above 10 percent.
Abercrombie & Fitch sets out FY25 revenue targets
Commenting on the financial targets, the company’s CEO Fran Horowitz said in a statement: “Our Always Forward Plan reflects the dynamic global, economic and political environment, with an expectation for known and unknown consumer pressures to emerge.
“This provides us with multiple avenues to achieve our targets, giving us confidence that we can meet our 2025 and longer-term plan.”
The company added that the Always Forward Plan is anchored on three strategic growth principles: execute focused brand growth plans; accelerate an enterprise-wide digital revolution; and operate with financial discipline.
The Abercrombie & Fitch and Abercrombie Kids brands would be targeting 6 percent to 8 percent sales CAGR over the three years ending in fiscal 2025; the Hollister brand would be targeting a flat to 2 percent sales CAGR over the three years and the Gilly Hicks brand would target a 15 percent sales CAGR.
The company further said that Abercrombie & Fitch adults is expected to be the largest contributor to growth.