Abercrombie & Fitch Co. reported net sales of $880 million, down 3% on a reported basis and roughly flat at constant currencies.
The gross margin rate of 59.2% is down about 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 to net earnings per diluted share last year of 77 cents and 86 cents on a published and adjusted non-GAAP basis. , respectively.
The company also announced a change to its board of directors as part of a leadership transition. The company added that after five years in the role and as part of its intention to retire as a director, Terry Burman will step down as chairman of the board at the end of the company’s fiscal year. company ending January 28, 2023.
Nigel Travis, current director and chair of the nominating and governance committee, will assume the role of chair effective January 28, 2023.
Commenting on the third quarter transactions, Fran Horowitz, CEO of the company, said, “We were pleased to see year-over-year sales trends improving for all brands in light of the global macroeconomic environment. Results were driven by Abercrombie brands, where we achieved the highest third-quarter net sales since 2014 and the tenth consecutive quarter of average retail growth per unit.
Abercrombie & Fitch expects full-year sales to fall 2-3%
For fiscal 2022, the company now expects net sales to decline in the 2-3% range from $3.7 billion in 2021. This compares to previous guidance of an average decline to a number.
For the fourth quarter, the company expects net sales to decline in the range of 2-4% from the fiscal fourth quarter 2021 level of $1.2 billion.
Nigel Travis to replace Terry Burman as Chairman of the Board of Abercrombie & Fitch
Burman, the company added, joined the board in January 2014 and was named non-executive chairman in February 2018. Travis joined the board as an independent director in February 2019.
“On behalf of our Board of Directors, our leadership team and the associates of Abercrombie & Fitch Co., I would like to thank Terry for all of his contributions to the transformation of the business over the past few years. I am confident in Nigel’s ability to guide us through our next chapter as we continue to transform and position the business for future growth,” added Horowitz.
Travis has held leadership positions in several global companies in the retail and foodservice 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 of the Board (May 2013 to December 2018) until his transition to the position of non-executive chairman (January 2019 to December 2020).
He was also President and Chief Executive Officer and a member of the Board of Directors of Papa John’s International (2005 to 2008) and held positions of increasing responsibility at Blockbuster, Inc., including President and Chief Operating Officer (1994 to 2004).
Travis also currently serves on the board of directors of Advance Auto Parts, Inc. (August 2018 to present).
Commenting on his new role with the company, Travis said: “It has been a privilege to serve on the board with Terry since I joined in 2019. Under his leadership the company has made incredible progress. I am thrilled to partner with Fran and the team to continue driving the business forward.