Abercrombie and Fitch reports record-breaking first quarter

Abercrombie & Fitch, the once-troubled retailer, announced its strongest-ever first-quarter earnings on Wednesday. Sales across its brands, including Hollister, surged 22%, exceeding $1 billion and surpassing analysts’ estimates by about $40 million.

Profits skyrocketed to $113.9 million, nearly seven times higher than the same period last year. The company’s stock surged almost 500% over the past year, more than double Nvidia’s gains.

Surpassing Expectations
The retailer achieved earnings per share of $2.14 versus the expected $1.74 and revenue of $1.02 billion against the anticipated $963.3 million. CEO Fran Horowitz credited the success to effective seasonal transitions, relevant assortments and compelling marketing.

Behind the success
Abercrombie & Fitch’s revitalization efforts include fresh styles, appeal to millennial professionals, cost-effective materials, and mitigating inflation, ushering in a new era for the iconic retailer.

Anticipating a 10% sales growth for the year, up from the previous 4% to 6% outlook, the company aims to develop the Hollister brand and expand into international markets, with notable growth expected in the U.K., Germany and China.