Fri, Sep 6, 9:24 PM (106 days ago)
Abercrombie & Fitch Co. reported strong financial results for the second quarter ended August 3, 2024, with net sales reaching $1,134 million, a 21% increase year-over-year, driven by higher average unit retail and improved traffic across channels. Gross profit margin improved to 64.9%, reflecting a decrease in cost of sales as a percentage of net sales. Operating income surged to $176 million, representing a 590 basis point increase in margin. Net income attributable to A&F was $133 million, or $2.50 per diluted share, also significantly higher than the prior year. Cash flow from operations was robust at $260 million, while cash and equivalents at period-end totaled $738 million. The company redeemed $214 million of Senior Secured Notes and amended its credit facility to enhance liquidity. Despite macroeconomic challenges, including inflation and geopolitical risks, Abercrombie remains focused on strategic growth, digital transformation, and optimizing its store network, with plans for further investments in the upcoming year. The company’s strong liquidity position supports ongoing operational and strategic initiatives.