The brand ended a strong year with a drop in net income amid inventory delays and fallout from Omicron.
For the first time since 2008, the retailer, whose banners also include Hollister and Gilly Hicks, plans to open more stores than it closes, with 50 openings for 2022 and 30 closings. Stores will be smaller, with varied presentations, the report said, with more off-mall locations.
“In our tool kit, we’ve got all sorts of store sizes and layouts,” CEO Fran Horowitz told WWD. The expansion will include Abercrombie’s intimates and activewear brand, Gilly Hicks. It currently has one freestanding location, which opened in July, in Columbus, Ohio. Additional stores are planned to open this year in the US and Europe, including a 3,000sq ft location in London this spring, the report said.
The company posted net income of $65.5M, or $1.12 per share, for the quarter ended 29 January, down from $82.4M, or $1.27 per share, in the year-ago period. Adjusted earnings per share of $1.14 missed analysts’ estimates of $1.27.
Abercrombie & Fitch Co. operates approximately 720 stores across its brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites.
