The American company Abercrombie & Fitch has several ready-to-wear stores with its base in the state of Ohio. The company was founded in 1892 by two men, Ezra Hasbrouck Fitch and David Thomas Abercrombie. The company's target market includes young adults and teenagers. After the close of a new quarter, it has achieved a record profit.
Abercrombie & Fitch has been in the news for some time, and its shareholders have been paying close attention. The company generated a better net operating profit in the first quarter of its business. This is a record level, not seen since 2008. Not only has the company returned to its pre-sanitary crisis level of activity, but it has also exceeded its pre-pandemic performance.
Its various quarterly results are now ahead of their pre-Covid-19 pandemic levels. The youth apparel chain 's operating profit totaled $57 million as reported. This figure is only for the first three months of its fiscal year, which closed at the end of May.
The American ready-to-wear company recorded a loss of more than $209 million in the first quarter of the previous fiscal year.
Note: It should be noted that the Abercrombie & Fitch group currently operates more than 730 stores. In contrast, in the past, it had over 1,000 stores. In the end, the company' s net income was $0.64 per share for the past quarter. It had a loss per share of $3.90 in the same quarter last year.
The significant growth momentum was also evident in the company's other performance indicators. The company was able to achieve a very strong 61% increase in revenue, which finally reached more than $781 million in the first quarter. Abercrombie & Fitch owes this wonderful performance to the Hollister brand, which was very dynamic.
This revenue is up a healthy 6% from its levels in the first three months of fiscal 2019. In other words, the company delivered higher sales than it did before the Covid-19 health crisis. It also came out above consensus by 13.7%.
Finally, online sales increased significantly in the same quarter. They increased by more than half, up 52%.
The net income generated by Abercrombie & Fitch in the last three months of 2020 is $1.27 per share, or $82.4 million. Earnings per share were ultimately $1.5, impacted by non-recurring items. Sales in this fourth quarter generated $1.122 billion despite 137 of the company's stores being closed in 2020.