Abercrombie & Fitch reports flat sales growth and announces transition to leadership

Abercrombie & Fitch reports flat sales growth and announces transition to leadership

Abercrombie & Fitch Co. reported net sales of $880 million, down 3 percent on a reported basis and about flat on a constant currency basis.

The gross profit percentage of 59.2 percent was about 450 basis points lower than last year. The company said net loss per diluted share was 4 cents on a reported basis and 1 cent 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. base , respectively.

The company also announced a change in its board of directors as part of a leadership change. The company added that Terry Burman, after five years in the position and in connection with his plans to retire as a director, will step down as chairman of the board at the end of the company’s fiscal year ending January 28 2023.

Nigel Travis, the current director and chair of the nomination and board committee, will assume the role of chair effective January 28, 2023.

Commenting on third quarter trading, Fran Horowitz, CEO of the company, said: “We were pleased to see year-over-year sales trends improve for all brands in light of the global macroeconomic environment. Results were driven by Abercrombie brands, where we delivered the highest third quarter net sales since 2014 and the tenth consecutive quarter of average retail growth.”

Abercrombie & Fitch expects full-year sales to decline 2 to 3 percent

For fiscal year 2022, the company now expects net sales to decline 2 to 3 percent from $3.7 billion in 2021, compared to previous guidance of a mid-single digit decline.

For the fourth quarter, the company expects net sales to decline 2 to 4 percent to its fiscal fourth quarter 2021 level of $1.2 billion.

Nigel Travis replaces Terry Burman as CEO of Abercrombie & Fitch

Burman, the company said, joined the board in January 2014 and was named non-executive chairman in February 2018. Travis joined the board in February 2019 as an independent director.

“On behalf of our board, the executive management team and employees of Abercrombie & Fitch Co. I would like to thank Terry for all his contributions to the transformation of the company over the years. I am confident in Nigel’s ability to see us through our next chapter as we continue to transform and position the company for future growth,” added Horowitz.

Travis has held leadership positions at several global companies in the retail and restaurant industries. He was a longtime leader of Dunkin Brands Group, Inc., including through its IPO in 2011, and served as CEO (January 2009 to July 2018) and Executive Chairman of the Board (May 2013 to December 2018) until moving to non-executive chairman (January 2019 to December 2020).

He also served as president and CEO and member of the board of directors of Papa John’s International (2005 to 2008), and held roles of increasing responsibility at Blockbuster, Inc., including president and COO (1994 to 2004).

Travis also currently serves 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 of Directors with Terry since I joined in 2019. Under his leadership, the company has made incredible progress. I am excited to be working with Fran and the team to move the business forward.”

Leave a Reply

Your email address will not be published. Required fields are marked *