Abercrombie & Fitch reported a strong fourth quarter of 2017, returning to positive comp territory, besting revenue and profit estimates, right-sizing its store footprint, increasing direct sales and continuing integration of its omnichannel initiatives.
Direct-to-consumer (DTC) sales comps were up 18% for the quarter, representing 34% of total sales, up from 31% in the fourth quarter of 2016. More than 70% of Abercrombie’s DTC traffic came from mobile during the quarter, a key metric given the deep penetration and engagement with smartphones.
“The investments we made in this area are paying off with a 14% improvement in (mobile) conversion,” CEO Fran Horowitz told analysts on an earnings call.
Omnichannel continues to be a major focus and is especially critical given the company’s youth demographic.
“The focus of our efforts is on continual testing, learning and adapting to make sure we have the most effective integration of the physical and digital world,” Horowitz said. “That’s the foundation of making sure our customers’ engagement with our brand is the best it can be whenever, wherever…