Abercrombie & Fitch Reports Stunning Q3 Earnings, Expects Strong Holiday Shopping Season

Abercrombie & Fitch blew the doors off in its latest earnings report, leading the retailer to up its holiday sales projections for the current quarter.

Net income for Q3, which ended Nov. 3, reached $131.98 million, about $2.50 per share. This is significantly higher than the $96.2 million, or $1.83 a share, for the same period last year, as reported by CNBC. Sales jumped 14% to $1.21 billion.

“For the sixth consecutive quarter, our global team delivered double-digit net sales growth,” said Abercrombie CEO Fran Horowitz, per a company statement. “This great sales performance led to better-than-expected results on both the top and bottom lines.”

In the second quarter of this year, Abercrombie & Fitch also reported strong earnings, posting a net income of $133 million. For comparison, income was a meager $57 million in Q2 2023.

For the current quarter, which includes the crucial holiday shopping season, Abercrombie projects sales to grow 5%-7%. While the company previously anticipated sales for the year to rise 12%-13%, new projections indicate a 14%-15% increase.

Abercrombie & Fitch Adjusting to the Future of Retail

To keep up the earnings momentum, Abercrombie is looking to increase its presence internationally. It’s also been expanding into new categories, including introducing a wedding collection as well as forging a partnership with the NFL.

Abercrombie is working hard to reach Gen Z shoppers through its Hollister brand. In the third quarter, the retailer noted that Hollister’s sales increased by 14%, representing nearly half of Abercrombie’s total income.

“With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model,” said Horowitz, per CNBC.

Founded in 1892 and headquartered in New Albany, Ohio, Abercrombie & Fitch is a lifestyle apparel retailer with brands catering to men, women, and children across various generations. In addition to its retail website, the company currently operates roughly 770 stores around the world, including North America, Asia, and the Middle East.