// Abercrombie & Fitch re-iterates its fourth quarterly guidance
// Like-for-likes expected to climb 9%
// Gross profit predicted to increase
Abercrombie & Fitch has maintained its fourth quarter forecast amid calendar shifts and unfavourable exchange rates after recording satisfactory results over Christmas.
It still expects net sales in the fourth quarter to decrease in the mid-single digits, but predicted like-for-like sales to climb following a nine per cent increase in the same period the previous year.
This result would mark the sixth consecutive quarter of positive comparable sales for the retail group, which operates the eponymous and Hollister retail chains.
Its gross profit rate is also expected to increase marginally when compared to the 58.4 per cent rise recorded in the same period last year.
Abercrombie & Fitch chief executive Fran Horowitz pointed out that the company is still on track to achieve top-line growth in fiscal 2018, which would be propped up by the $1 billion recorded in digital sales.
“We were pleased with our performance in the competitive holiday season,” Horowitz said.
“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.”