The UK arm of Abercrombie & Fitch and Hollister has reported a significant surge in profits and sales, surpassing £200m.
- In the latest financial year, pre-tax profits tripled, reaching £9.8 million compared to £3.2 million the previous year.
- The company’s turnover increased from £171.1 million to £213.1 million, with both in-store and online sales showing robust growth.
- The average number of employees rose, indicating expansion in the firm’s UK operations against challenging economic conditions.
- The former CEO of Abercrombie & Fitch, Mike Jeffries, is embroiled in legal issues, pleading not guilty to serious charges.
The financial year ending on February 3, 2024, marked a remarkable period for the UK division managing Abercrombie & Fitch and Hollister. The company’s sales surpassed a significant £200 million milestone. Such a leap was accompanied by a substantial increase in pre-tax profits which tripled to £9.8 million, according to newly filed accounts with Companies House, as reported by City AM. This profit growth is a stark rise from the £3.2 million recorded in the previous year.
A detailed examination of the financial data reveals a notable rise in turnover, climbing from £171.1 million to £213.1 million. Both the physical stores and digital platforms of the Abercrombie & Fitch and Hollister brands demonstrated significant progress. In-store sales rose from £87.4 million to £101.4 million, while online platforms saw an increase from £79.5 million to £100.6 million.
The firm’s UK workforce also expanded, with the average number of employees growing from 1,896 to 1,991 throughout the year. Despite these positive outcomes, the company acknowledged the challenges posed by the ‘economic climate’. A statement from the board highlighted the success in exceeding business expectations through a close relationship with customers, strict inventory control, and disciplined financial operations.
The board also expressed concerns regarding adverse impacts from the current economic environment, citing supply chain disruptions, inflationary pressures, and geopolitical factors. They noted that while costs for freight and raw materials eased towards the fiscal year’s end, these challenges are anticipated to persist. The company remains vigilant and prepared to respond as necessary.
In a separate development, Mike Jeffries, the former CEO of Abercrombie & Fitch, is facing significant legal battles. Alongside two others, he has been charged with sex trafficking and interstate prostitution. If convicted of the sex trafficking charge, they could potentially face severe sentences. Jeffries has denied the allegations, emphasising his not guilty plea in federal court.
Abercrombie & Fitch and Hollister’s UK division exhibits substantial financial growth amidst economic challenges, while former leadership faces legal scrutiny.
