Summary by Futu AI
Abercrombie & Fitch Co. reported strong Q2 2024 results, with net sales increasing 21% to $1.13 billion and comparable sales rising 18% year-over-year. Net income more than doubled to $133.2 million, or $2.50 per diluted share, up from $56.9 million, or $1.10 per share, in Q2 2023. Gross profit margin expanded by 240 basis points to 64.9%.The company saw growth across all regions, with the Americas segment leading at 23% sales increase. Abercrombie brands, including Abercrombie & Fitch and abercrombie kids, outperformed with a 26% sales jump. The strong performance was attributed to higher average unit retail prices, reduced promotional activity, and increased store traffic.Looking ahead, Abercrombie & Fitch remains focused on its 2025 Always Forward Plan, emphasizing digital transformation and financial discipline. The company redeemed all outstanding Senior Secured Notes and increased its asset-based revolving credit facility to $500 million. Management expressed confidence in the company's ability to maintain growth momentum and improve profitability in the coming quarters.