Fri, Jun 7, 8:37 PM (92 days ago)
Abercrombie & Fitch Co. reported robust financial performance for the first quarter ended May 4, 2024. Key highlights include: - **Net Sales**: Increased by 22% year-over-year to $1.02 billion, primarily driven by higher average unit retail due to reduced promotional activity. Comparable sales also rose by 21%. - **Gross Profit**: Increased to $677.5 million with a gross profit margin of 66.4%, up 540 basis points from the previous year, attributed to lower cotton and raw material costs. - **Operating Income**: Rose significantly to $129.8 million, representing 12.7% of net sales, compared to $34.0 million (4.1% of net sales) in the prior year. - **Net Income**: Jumped to $113.9 million, or $2.14 per diluted share, up from $16.6 million, or $0.32 per diluted share, in the previous year. - **Cash Flow**: Operating activities generated $95.0 million in cash, a significant turnaround from a $0.6 million outflow in the prior year. However, cash used in investing and financing activities were $38.9 million and $93.0 million, respectively. - **Inventory Management**: Inventories decreased to $449.3 million from $469.5 million at the beginning of the fiscal year, reflecting better inventory management. - **Debt**: The company reduced its gross long-term borrowings to $213.9 million, down from $223.2 million. Overall, Abercrombie & Fitch Co. demonstrated strong financial health and operational efficiency, with positive trends in sales, profitability, and inventory management, positioning it well for future growth.