Abercrombie & Fitch trims holiday-quarter gross sales outlook

Abercrombie & Fitch trims holiday-quarter sales outlook

Prospects exit an Abercrombie & Fitch retailer in San Francisco, California.

David Paul Morris | Bloomberg | Getty Photos

Abercrombie & Fitch mentioned Monday that it noticed sturdy demand from shoppers over the vacations however that it did not have sufficient stock to promote, notably at its Hollister and Gilly Hicks traces.

Shares rose practically 7% in prolonged buying and selling following the discharge, regardless of Abercrombie decreasing its steerage for fourth-quarter gross sales. The inventory had closed the day down 2.5% at $32.35.

“We imagine that, if we had the stock on-hand, we might have delivered gross sales inside our earlier outlook vary,” mentioned Chief Government Fran Horowitz, in a press launch. “Publish-holiday, as stock has landed, now we have skilled an acceleration in gross sales pattern.”

Abercrombie mentioned it sees fourth-quarter income up 4% to six% from 2020 ranges, or flat to down 2% in contrast with 2019. Beforehand, it was calling for gross sales within the vacation quarter to be up 3% to five% versus 2019. It did not present an earnings determine.

The corporate reported gross sales of $1.12 billion in 2020 and $1.19 billion in 2019.

Analysts had been calling for fourth-quarter earnings of $1.59 per share, with gross sales up 10.7% yr over yr, based on Refinitiv estimates.

The attire retailer mentioned it has confronted heightened Covid-related impacts and restrictions, with out detailing precisely what these are. Earlier within the day, Lululemon mentioned its fourth-quarter gross sales are anticipated to come back in on the low finish of earlier steerage because of staffing shortages and shortened retailer hours which have been exacerbated in latest weeks by omicron.

For the yr, Abercrombie sees gross sales up 19% to twenty% from year-ago ranges. Analysts had been in search of a 21.2% enhance.

The corporate additionally mentioned it is trimming its deliberate capital expenditures for the yr to a spread of $90 million to $95 million, down from $100 million.

Discover the complete launch from Abercrombie here.

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