Abercrombie & Fitch Co. reported net sales of $880 million, down 3 percent on a reported basis and about flat on a constant currency basis.
Gross profit of 59.2 per cent, was down approx. 450 basis points compared to last year. The company said net loss per diluted share was 4 cents on a reported basis and 1 cent on an adjusted non-GAAP basis, compared with net income per diluted share last year of 77 cents and 86 cents on a reported and adjusted non-GAAP basis, respectively.
The company also announced a change in its board of directors as part of a leadership transition. The company added that after five years in the position and in connection with his plans to step down as a director, Terry Burman will step down as chairman at the close of the company’s fiscal year ending January 28, 2023.
Nigel Travis, current director and chair of the nominating and governance committee, will take over the role of chairman from 28 January 2023.
Commenting on the third quarter trading, Fran Horowitz, CEO of the company, said: “We were pleased to see year-over-year sales trends improve across brands in light of the global macroeconomic environment. The results were driven by Abercrombie brands where we delivered highest net sales in the third quarter since 2014 and the tenth quarter in a row with average retail growth.
Abercrombie & Fitch expects sales for the full year to fall by 2 to 3 percent
For the financial year 2022, the company now expects net sales to be down in the range of 2 to 3 percent from $3.7 billion in 2021. This compared to previous prospects of down to mid-single digits.
For the fourth quarter, the company expects net sales to fall in the range of 2 to 4 percent to the fiscal fourth quarter 2021 level of $1.2 billion.
Nigel Travis is to replace Terry Burman as chairman of Abercrombie & Fitch
Burman, the company further said, joined the board in January 2014 and was appointed non-executive chairman in February 2018. Travis joined the board as an independent director in February 2019.
“On behalf of our board, management team and Abercrombie & Fitch Co. employees, I would like to thank Terry for all of his contributions to the company’s transformation over the past few years. I am confident in Nigel’s ability to help us through the next chapter as we continue to transform and position the company for future growth,” added Horowitz.
Travis has served in senior leadership roles in several global companies within the retail and restaurant industries. A longtime executive of Dunkin Brands Group, Inc., including through its 2011 IPO, he served as CEO (January 2009 to July 2018) and Executive Chairman (May 2013 to December 2018) until transitioning to Non-Executive Chairman (January 2019 to December 2020).
He also served as President and CEO and on the Board of Directors of Papa John’s International (2005 to 2008), and in roles of increasing responsibility at Blockbuster, Inc., including President and COO (1994 to 2004).
Travis is also currently on the Board of Directors of Advance Auto Parts, Inc. (August 2018 to present).
Commenting on his new role at the company, Travis said: “It has been a privilege to sit on the board with Terry since I joined in 2019. Under his leadership, the company has made incredible progress. I am excited to work with Fran and the team to continue to move the company forward.”