'As long as you can reduce fixed costs, this shift to digital can be profitable,' Abercrombie & Fitch CFO Scott Lipesky said in a phone interview.
Even though overall sales were down, investors were encouraged to see that Abercrombie managed to keep its costs down, amid such rapid online growth, boosting its profitability. Typically, when a retailer's online sales rise and store sales shrink, that comes with added expenses like packing and shipping that weigh on margins.
"As long as you can reduce fixed costs, this shift to digital can be profitable," CFO Scott Lipesky said in a phone interview. Excluding one-time charges, the retailer earned 23 cents a share, better than the 83-cent loss expected by analysts, based on Refinitiv data.
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