Abercrombie: ambitious long-term targets
(CercleFinance.com) - On Tuesday Abercrombie & Fitch set a long-term target of annual sales of five billion dollars, with an operating margin of at least 10%.
At its investor day the US label, which was very popular in the early 2010s, said that it is targeting sales of 4.1 to 4.3 billion dollars by the end of 2025/2026 (January 2026).
The apparel company's strategic plan, known as the "Always Forward Plan", also includes an operating margin target of over 8% by that time.
Abercrombie, which still says that it is nowhere near where it was at this time four years ago, says the main contributor to its growth should be its flagship adult apparel brand, Abercrombie & Fitch.
However, company also appears to be relying heavily on its Gilly Hicks underwear brand, which is expected to generate average annual sales growth of 15% over the next three years.
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