Abercrombie&Fitch expect sales growth for their brands

Abercrombie&Fitch expect sales growth for their brands

By Kristina Sobol

Budrigannews.com – On Monday, Abercrombie & Fitch Co. raised its holiday-quarter sales forecast due to strong demand for its brands during the busiest shopping season of the year. This pushed shares about 3% higher before the bell rang.

The Ohio-based apparel retailer stated that it now anticipates a rise in net sales of between 1% and 2% in the fourth quarter, as opposed to its previous forecast of a decline of between 2% and 4%.

As demand declines from pandemic highs, the business has been reorganizing its inventory to eliminate casual wear and athleisure clothing. Additionally, it has introduced new styles that have attracted wealthier customers.

Despite a rise in overall sales since the third quarter, Abercrombie and Fitch expects Hollister brand sales to remain below 2021 levels in the holiday quarter.

From an earlier estimate of 5% to 7%, the business now anticipates an operating margin of between 6% and 8% for the fourth quarter.

More Stocks continued to rise in U. S. trading session

American Eagle Outfitters, a rival Inc. said on Monday that its revenue and profit margins were tracking at the high end of its forecasts for the fourth quarter. This was due to the company’s decision to rightsize inventory and the better-than-expected performance at its American Eagle label.

In the meantime, Lululemon Athletica (NASDAQ:) In premarket trade, Inc. shares fell more than 12% after the company lowered its expectations for gross margins in the fourth quarter.