US fashion group Abercrombie & Fitch’s debut UK store is generating higher sales and margins than its flagship store on New York’s Fifth Avenue.

The London shop, which opened in March, was greeted with scepticism by some industry observers because of higher prices charged than in the US, its unusual Savile Row location and lack of prominent branding.

However, Abercrombie & Fitch chief financial officer Mike Kramer confounded doubters by providing the first details of London’s performance. Speaking at a Goldman Sachs investors’ conference in New York last week, he said that the shop was doing “exceptionally well” and “tracking to generate higher sales per selling foot and four-wall profit margin than the Fifth Avenue flagship”.

However, some rivals continue to harbour reservations about performance. One fashion chief said that the results may simply reflect the high prices being charged in London rather than spectacular demand.

The retailer has also launched a transactional web site in the UK as it narrows its search for further stores. It is seeking iconic buildings in Manchester, Glasgow, Edinburgh and Dublin to open destination stores and expects them to fuel online sales.

Kramer said that the London opening had driven sales at sister fascia Hollister’s online store. He said: “We’re very pleased with our direct-to-consumer business internationally, particularly as we put in brick and mortar with A&F in London and what that’s done to our Hollister direct-to-consumer business – very spectacular.”

A&F’s global property adviser PBS Real Estate has appointed NB Real Estate to search for Abercrombie & Fitch and Hollister store sites across the UK.

NB Real Estate divisional director Richard Collyer said: “Abercrombie & Fitch wants to find landmark buildings that are unique like the Savile Row shop. That way, each store will be a destination and will reflect its brand values.

“Hollister is targeted at a different customer, so could well take stores in shopping centres as well as high streets, unlike Abercrombie & Fitch,” he said.

No comment was available from Abercrombie & Fitch.

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