By Sam Boughedda
Clothing brand retailer Abercrombie & Fitch Company (NYSE:ANF) announced its 'Always Forward Plan' on Tuesday, setting a long-term revenue target of $5 billion.
The company, which reported 2021 net sales of $3.7 billion, hosted an investor event today, its first in four years.
Abercrombie Chief Executive, Fran Horowitz, said: "Today, we have clearly defined positioning at each of our global brands with unique edit points, a smaller, modernized and more profitable omni-enabled store base, digital penetration and meaningful cash generation. Our company and brands are purpose-led, and listening to and learning from our global customer is deeply ingrained in our thinking and culture in a way that it never has been before."
The plan set out by the company during its investor day includes a financial outlook that the company expects to reach by the end of fiscal 2025, anticipating annual revenues of $4.1 billion to $4.3 billion and a sustainable yearly operating margin rate at or above 8%.
Over the longer term, the company "believes it can reach $5 billion of annual revenues and a sustainable annual operating margin rate at or above 10%."
"Our Always Forward Plan reflects the dynamic global, economic and political environment, with an expectation for known and unknown consumer pressures to emerge. This provides us with multiple avenues to achieve our targets, giving us confidence that we can meet our 2025 and longer-term plan," added Horowitz.