Abercrombie & Fitch Co. Reports Third Quarter Results
A summary of results for the third quarter ended October 29, 2022 as compared to the third quarter ended October 30, 2021: *Net sales of $880 million, down 3% as compared to last year on a reported basis and approximately flat on a constant currency basis. *Gross profit rate of 59.2%, down approximately 450 basis points as compared to last year. The year-over-year decrease was primarily driven by 370 basis points of higher freight and raw material costs and 60 basis points from the adverse impact of exchange rates. *Operating expense, excluding other operating income, net, approximately flat compared to last year, with decreases in marketing and incentive-based compensation, offset by higher inflation and digital fulfillment expenses. Operating expense as a percentage of sales increased to 57.2% from 55.8% last year. *Operating income of $18 million and $21 million on a reported and adjusted non-GAAP basis, respectively, as compared to operating income of $73 million and $79 million last year, on a reported and adjusted non-GAAP basis, respectively.