Abercrombie & Fitch Co, a leading global specialty retailer of apparel and accessories, has reported net sales increase to $861 million, despite adverse impacts from the calendar shift and foreign currency. The gross profit rate of the company was 61.3 per cent, flat to last year, and down approximately 40 basis points on a constant currency basis.
Stores and distribution expense was $371.9 million, down from $375.9 million last year, as expense reductions, changes in foreign currency exchange rates and a benefit from the calendar shift more than offset volume-related expenses from higher direct-to-consumer sales, according to a press release from the company.
“We are pleased with our third quarter performance, our fifth consecutive quarter of positive comparable sales, with growth across both of our brands. We delivered 3 per cent comparable sales growth on top of 4 per cent last year, with continued gross profit rate stabilisation. Our strong US omni-channel business and 16 per cent global digital sales growth confirm that our playbooks are working,” said Fran Horowitz, chief executive officer of Abercrombie & Fitch.
“As expected, we had a solid start to the holiday season, demonstrating the effectiveness of our continued focus on the customer. We are well-positioned to deliver top-line growth, gross profit rate expansion and operating expense leverage for the full year,” he added.
For the Q4 FY2018, the company expects the net sales to be down to mid single digits, including the adverse effect from the calendar shift, loss of FY2017’s 53rd week of approximately $60 million and loss from changes in foreign currency exchange rates of approximately $15 million. The company also expects comparable sales to be up low single digits and gross profit rate to be flat slightly from the FY2017 rate of 58.4 per cent.