Apparel Online Bangladesh Magazine April Issue 2019 | Page 64

RETAIL CURRENT APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ Abercrombie & Fitch sales continue to grow Renowned US fashion retailer Abercrombie & Fitch has witnessed growth in sales for the second successive year. transformation initiatives and said that it will help them deliver their previously disclosed fiscal 2020 targets. The hike has been mainly due to the growing success of the retailer’s new store format. Notably, the Q4 sales slumped by 3 per cent. “The comparable growth rate of 3 per cent is more impressive when set against last year’s stellar 9 per cent uplift,” substantiated Neil Saunders, Managing Director, GlobalData Retail. Its comparable sales increased by 3 per cent (to US $ 3.6 billion) in the year ending 2 February 2019. The operating income, excluding extraordinary items, was US $ 138.6 million, much higher than last year’s figures (US $ 100.8 million). Elaborating more on this, Fran Horowitz, CEO, Abercrombie & Fitch, said that they have seen an upswing in overall profit and reduced operating cost thereby resulting in 77 per cent improvement in net income for the retailer. He expressed optimism about the company’s growing The retailer is also happy about the growing popularity of its Hollister brand and the latter’s ability to conveniently convert a core group of shoppers on regular basis as well as adding new shoppers. Target Q4 earnings soar 12.5 per cent to US $ 23 billion Target Corporation reported its fourth quarter earnings in line with street expectations. Earnings for the quarter rose by 12.5 per cent to US $ 1.53 per share, even as revenue remained flat at US $ 22.9 billion. Analysts had predicted earnings of US $ 1.53 per share on revenue of US $ 23.15 billion. On a GAAP basis, earnings fell to US $ 1.52 per share from US $ 1.99 per share in the same quarter last year. Comp sales came in at 5.3 per cent, higher than the 5 per cent projected by the management. Earlier, the company said its comparable sales for the November and December period grew by 5.7 per cent, helped by strong traffic and positive store comps. Comparable digital sales grew by 31 per cent in the fourth quarter. In the November/December period, comp sales had improved by 29 per cent fuelled by store-fulfilled digital sales growth. For the full year, digital sales jumped 36 per cent, marking the fifth consecutive year of more than 25 per cent growth. “We’re pleased with our fourth quarter performance, which capped off an outstanding year for Target. Thanks to the dedication of Target’s team, we delivered our strongest traffic and comparable sales growth in well over a decade and our 2018 adjusted EPS set a new all-time record for the company,” observed Brian Cornell, Chairman & Chief Executive Officer, Target Corporation, adding, “We have been driving an ambitious agenda to transform our company, evolve with our guests and drive strong growth. On every count, we’ve been successful, and as we enter 2019, we will continue to lead the industry by adapting, 64 Apparel Online Bangladesh | APRIL 2019 | www.apparelresources.com innovating and delivering more for our guests and shareholders.” Target was among the few retail players that did relatively well during the last holiday quarter, which was the slowest since 2009. The company saw the strongest growth in toys, baby products and seasonal gift items during the holiday period. Target has also been taking measures to improve its delivery service and the acquisition of, a grocery delivery service Shipt, has benefited the company in this area. Minneapolis-based Target Corporation caters to its customers through more than 1,800 stores and at Target.com. Since 1946, Target has given 5 per cent of its profit to communities, which today equals millions of dollars a week.