Abercrombie & Fitch sets $5 billion annual sales goal ahead of investor day event

Abercrombie & Fitch Co. set a long-term annual sales goal of $5 billion ahead of its investor day event on Tuesday with an operating margin rate goal at or above 10%. By 2025, the retailer expects to hit annual revenue of $4.1 billion to $4.3 billion with an operating margin rate at or above 8%. The namesake and Abercrombie Kids brands has a 6% to 8% sales compound annual growth rate (CAGR) goal over the next three years; Hollister has a CAGR goal of flat to up 2%; and the Gilly Hicks underwear brand has a CAGR goal of 15% sales growth. Abercrombie & Fitch will introduce its Always Forward Plan focused on digital and financial discipline during the investor event. Abercrombie stock rose 1.5% in Tuesday premarket trading after the goals were announced. Shares have tumbled 44.7% for the year to date.

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