Abercrombie saw “record” Q1 net sales of $1.1bn, up 2% compared to the same period last year.
This was also Abercrombie’s 14th consecutive quarter of growth
Sales growth was led by the Americas, where sales increased 3% and APAC, which saw growth of 24%. These results were partially offset by a 10% decline in sales in EMEA, which the brand attributed to the ongoing conflict in the Middle East. The company saw an operating margin of 8.0%, with diluted earnings per share of $1.47, which exceeds the outlook range.
Operating income decreased to $89m compared to last year, when it reached $102m. “We delivered record first-quarter net sales and our 14th consecutive quarter of growth, reflecting our teams’ consistent execution for our customers amid a dynamic global environment. Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC,” Fran Horowitz, chief executive officer at the company, explained. “In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region. “Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook. We continued to invest in stores and marketing to strengthen our brands and customer experiences, while also returning $105m to shareholders through share repurchases, supported by our strong balance sheet.” The group’s Abercrombie brand saw growth of 3%, while its Hollister brand was flat.