Fran Horowitz, chief govt officer of Abercrombie & Fitch Co., who has orchestrated one of many retail business’s strongest turnarounds, has been getting properly compensated for her efforts.
Final yr, Horowitz’ whole compensation package deal totaled $17 million, together with $1.4 million in wage, $5.3 million in incentive pay and $10.3 million in inventory awards, which tie the CEO’s pay to the features seen by different shareholders. That was considerably extra compensation than the yr earlier than when the CEO’s whole compensation package deal got here to $15 million, together with $1.4 million in wage, $4.8 million in incentive pay and $8.9 million in inventory awards.
The New Albany, Ohio-based youth specialty retailer generated $4.95 billion in gross sales final yr, up 16 % from 2023, pushed by comparable gross sales of 17 % with double-digit comparable gross sales progress throughout areas and types. By division, Abercrombie manufacturers delivered internet gross sales progress of 16 % on comparable gross sales of 15 %, with Hollister manufacturers rising internet gross sales 15 % on comparable gross sales of 19 %. Working earnings rose 15 % to $741 million. By way of gross sales and working earnings, 2024 was the most effective within the historical past of the corporate.
A lot of the corporate’s success has stemmed from being higher at chasing orders for hot-selling objects, downsizing and reworking shops for larger effectivity and productiveness, to be extra environment friendly, having a robust presence on social media, capturing extra clients annually, offering interesting, well-designed product at cheap costs and being extra inclusive in its imagery and advertising.
Horowitz has served as CEO of the corporate since February 2017. Earlier, she was president and chief merchandising officer for all manufacturers of the corporate and earlier than that served as Hollister’s model president.
Different executives have additionally been nicely compensated. Scott D. Lipesky, govt vice chairman and chief working officer, acquired $5.3 million in whole compensation, together with $821,154 in wage, $2.7 million in inventory awards, and $1.7 million in non-equity incentive plan compensation. In 2023, Lipesky’s whole compensation got here to $4.7 million.
Samir Desai, govt vice chairman and chief digital and expertise officer, final yr had a complete compensation package deal valued at $4.1 million, together with $721,154 in wage, $1.9 million in inventory awards, and $1.4 million in non-equity incentive plan compensation. In 2023, his whole compensation got here to $4.35 million.
