Abercrombie & Fitch reaffirms Q4 guidance
today Jan 15, 2019
American apparel and lifestyle retailer Abercrombie & Fitch Co. announced on Monday that it is reiterating its previously reported guidance for the fourth quarter and full fiscal year 2018 following a satisfactory holiday period.
The company, which operates stores under the Abercrombie & Fitch, Abercrombie Kids and Hollister banners, still expects net sales in the fourth quarter to decrease in the mid-single digits, due in part to calendar shifts and unfavorable exchange rates.
Comparable sales, on the other hand, are anticipated to increase in the low-single digits, following a rise of 9% in the same period in the previous year, a result which would mark the company’s sixth consecutive quarter of positive comps.
Gross profit rate is also expected to increase slightly compared to the 58.4% reported in the prior-year period.
“We were pleased with our performance in the competitive holiday season,” said Abercrombie & Fitch CEO Fran Horowitz in a release. “From a regional perspective, comp trends remain directionally consistent with the third quarter. Hollister continues its momentum with strength across genders. At Abercrombie, weakness in Women’s tops and dresses is driving a projected negative brand comp for the quarter, which the brand's new leadership team is actively addressing.”
Horowitz also pointed out that the company is still on track to achieve top-line growth in fiscal 2018, thanks, in part, to having achieved over $1 billion in digital sales.
The company stated that it plans to release its Q4 and full-year 2018 financial results on March 6, 2019.
Following Abercrombie & Fitch’s announcement, the company’s stock was down 4.6% at the closing bell on Monday.
Copyright © 2020 FashionNetwork.com All rights reserved.