Abercrombie cuts full-year sales forecast on inflation hit
2022.08.25 15:05
FILE PHOTO: Abercrombie & Fitch products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) -Apparel retailer Abercrombie & Fitch Co on Thursday cut its full-year sales forecast after falling short of Wall Street estimates for quarterly sales, underscoring increasing competition for consumer dollars amid surging inflation.
Shares of the Ohio-based retailer, which have shed more than 46% this year, were down about 11% in premarket trading.
Soaring inflation is eroding consumer spending power at a greater pace than seen in decades, prompting Americans to curb spending on apparel and other discretionary purchases and prioritize essentials.
The company now expects net sales to decline mid single digits in fiscal 2022, compared with its earlier forecast of flat to 2% growth.
The company’s net sales fell to $805.09 million in the second quarter from $864.9 million a year earlier, compared with analysts’ average estimate of $843.6 million, according to Refinitiv IBES data.
