Abercrombie sales surge as 1990s revival spreads

While the spaghetti straps, bucket hats and platform shoes popular in the 90s are enjoying a fashion revival, Abercrombie’s offerings are not a repeat of the decade.

Rather, Mr Saunders said the company’s range, less sexy and with fewer logos than in the 90s, is resonating with millennial customers who want to look fresh without following the latest “cutting edge” fashions.

He said the success of Abercrombie’s turnaround is unusual in retail.

“It’s quite rare for a company of Abercrombie & Fitch’s direction and its rooted image from the 90s to do a complete 180 and emerge as a very modern and successful and different brand,” he said. “We don’t see it happen very often.”

The firm said sales jumped 22% year-on-year in the February-April period to $1bn (£787m), a quarterly record.

The growth was widespread, with revenue up 23% in the Americas and 19% in Europe, where the UK and Germany led gains.

Current Abercrombie boss Fran Horowitz, who became chief executive in 2017, said 2023 had been a defining one for the company, as its efforts to modernise its data and digital capabilities paid off.

“We entered 2024 with momentum,” she told analysts on a call to discuss the quarterly financial results.

“Our first quarter results are further evidence that we are off to a strong start.”

Shares jumped more than 20% after the report, despite a note of caution from chief financial officer Scott Lipesky, who warned there was “still a lot of uncertainty” about the economy.

He said that the firm’s sales could slow in the second half of the year.

Mr Saunders said some slower growth was expected after the boom of 2023, but that the firm was still outpacing the overall market and had an opportunity to grow overseas in countries such as the UK.

Ms Horowitz focused on that prospect during the quarterly update, noting a recent visit to London.

“We’re really excited about the opportunity that we see there,” she said.