Q2 2024 Abercrombie & Fitch Co Earnings Call Transcript
Key Points
- Abercrombie & Fitch Co (ANF) reported record net sales of $1.1 billion for the second quarter, a 21% increase year-over-year.
- The company achieved an operating margin of 15.5%, significantly higher than the previous year.
- Abercrombie & Fitch Co (ANF) saw balanced growth across regions, brands, and genders, with notable performance in the Americas, EMEA, and APAC regions.
- The Abercrombie brands experienced a 26% increase in net sales, driven by strong performance in categories like seasonal shorts, swims, skirts, and dresses.
- The company has successfully reduced clearance levels and maintained lean inventory, contributing to higher average unit retail (AUR) and improved gross profit margins.
- Higher freight costs partially offset the benefits from improved product costs and higher AUR, impacting gross profit margins.
- Despite strong performance, the company faces ongoing challenges in managing promotional activities, which remain a necessary part of their business strategy.
- The APAC region showed only a 3% increase in net sales, indicating slower growth compared to other regions.
- The company anticipates continued elevated freight costs into the fourth quarter, which could impact future profitability.
- Abercrombie & Fitch Co (ANF) has a cautious outlook for the fourth quarter, expecting sales growth to be lower compared to the third quarter, partly due to the calendar shift from the 53rd week in 2023.
Good day and thank you for standing by. Welcome to the Abercrombie & Fitch second quarter 2024 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Mohit Gupta. Please go ahead.
Thank you. Good morning and welcome to our second quarter 2024 earnings call. Joining me today on the call are Fran Horowitz, Chief Executive Officer, and Scott Lipesky, Chief Financial Officer and Chief Operating Officer.
Earlier this morning we issued our second quarter earnings release, which is available on our website at corporate.abercrombie.com, under the Investor section. Also available on our website is an Investor Presentation.
Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties
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