Abercrombie & Fitch and Hollister UK have achieved a significant financial milestone, reporting substantial growth despite economic pressures.
- In the year to February 2024, the UK division’s pre-tax profit surged to £9.8 million, up from £3.2 million previously.
- The company’s turnover increased from £171.1 million to £213.1 million, driven by both in-store and online sales growth.
- Abercrombie & Fitch noted difficulties linked to the economic climate, including supply chain issues and inflation.
- Former CEO Mike Jeffries faces legal challenges in the US, pleading not guilty to serious charges.
The financial performance of the UK division of Abercrombie & Fitch and Hollister has been remarkable over the 12 months leading to February 2024. The pre-tax profit for this period has tripled to £9.8 million, compared to £3.2 million the previous year, according to the latest accounts filed with Companies House. This growth was supported by a significant boost in turnover from £171.1 million to £213.1 million.
In-store sales for the brands increased from £87.4 million to £101.4 million, while online sales also rose notably from £79.5 million to £100.6 million. The company managed to achieve these results despite the challenging economic conditions, which included supply chain disruptions and inflationary pressures.
The average number of employees rose modestly from 1,896 to 1,991, indicating a small expansion in workforce to support the business growth. The board highlighted that the success was a result of staying close to customers, managing inventories efficiently, and exercising strict financial discipline.
A statement from Abercrombie & Fitch acknowledged that while the company finished with year-over-year net sales growth exceeding expectations, it faces ongoing adverse impacts from the current economic environment. Issues such as geopolitical tensions continue to pose challenges.
The company’s operations have not been immune to these economic headwinds, despite a decrease in freight and raw material costs towards the end of the fiscal year. Abercrombie & Fitch remains vigilant, assessing ongoing impacts on its operations and financial health.
In a different vein, former CEO Mike Jeffries is currently embroiled in legal proceedings in New York, where he has pleaded not guilty to charges of sex trafficking and prostitution. Jeffries, along with two others, could face severe penalties if found guilty, with the sex trafficking charge carrying a potential life sentence.
Abercrombie & Fitch’s UK operations have shown resilience with significant profit growth amidst prevailing economic difficulties.
