Profit triples at Abercrombie & Fitch and Hollister owner
Profit tripled at the business behind Abercrombie & Fitch and Hollister in the UK during its latest financial year as its sales passed the £200m mark.
The London-headquartered division has reported a pre-tax profit of £9.8m for the 12 months to 3 February, 2024, according to newly-filed accounts with Companies House.
The total comes after the firm posted a pre-tax profit of £3.2m for the prior period.
The results also show that the company’s turnover increased in the year from £171.1m to £213.1m.
The firm behind Abercrombie & Fitch and Hollister saw its store sales increase from £87.4m to £101.4m in the year while its online turnover grew from £79.5m to £100.6m.
During the year, the average number of people employed by the business in the UK rose from 1,896 to 1,991.
Abercrombie & Fitch hit by ‘economic climate’
A statement signed off by the board said: “The company performed well through fiscal 2023, finishing with a year-over-year net sales growth, which exceed business expectations.
“This was achievable by staying close to our customers, tightly controlling inventories and continuing to operate with financial discipline.
“Nevertheless, the company has experienced various adverse impacts in the current economic environment, including supply chain disruptions, inflationary pressures and the geopolitical landscape which continue to negatively impact our business.
“While freight and raw materials costs waned towards the end of fiscal 2023, the adverse consequences of the current economic environment continue to impact the company and may persist for some time.
“The company will continue to assess impacts on its operations and financial condition and will respond as it deems appropriate.”
The results come after the former boss of Abercrombie & Fitch pleaded not guilty sex trafficking and prostitution charges in New York.
Ex-chief executive Mike Jeffries, 80, his partner Matthew Smith, 61, and a third man, James Jacobson, 71, were arrested in the US on Tuesday morning after being charged with one count of sex trafficking and 15 counts of interstate prostitution.
Jeffries, who was Abercrombie & Fitch’s chief executive from 1992 to 2014, denied the charges at the federal courthouse in Central Islip, Long Island, on Friday.
Jacobson also planned to plead not guilty, his lawyer said. No date has been set for Smith.
If convicted of the sex trafficking charge, the defendants face a maximum sentence of life imprisonment and a mandatory minimum of 15 years.