The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
COLUMBUS, United States — Abercrombie & Fitch Co topped Wall Street forecasts for quarterly same-store sales on Friday, led by stronger demand for Hollister surf-wear as well as its namesake line of teen apparel.
Shares of the New Albany, Ohio-headquartered apparel retailer rose more than 7 percent in premarket trading following a 7.3 percent slide on Thursday.
Same-store sales at Hollister, the company's key revenue contributor, rose 6 percent and topped analysts' estimates, while the Abercrombie brand also exceeded expectations on same-store sales.
Overall sales at established stores rose 5 percent in the first quarter ended May 5. Analysts on average had expected a 4 percent increase, according to Thomson Reuters I/B/E/S.
ADVERTISEMENT
Net sales rose nearly 11 percent to $730.9 million and came in ahead of Wall Street estimates of $695.7 million.
Net loss attributable to Abercrombie & Fitch narrowed to $42.5 million from $61.7 million a year earlier.
Excluding one-time items, the company reported a loss of 56 cents per share, smaller than the 77 cents analysts were expecting.
By Uday Sampath; editor: Sai Sachin Ravikumar.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.