Customers exit an Abercrombie & Fitch retailer in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Abercrombie & Fitch stated Monday that it noticed robust demand from customers over the vacations however that it did not have sufficient stock to promote, significantly at its Hollister and Gilly Hicks traces.
Shares rose almost 7% in prolonged buying and selling following the discharge, regardless of Abercrombie reducing its steering 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,” stated Chief Executive Fran Horowitz, in a press launch. “Post-holiday, as stock has landed, we now have skilled an acceleration in gross sales development.”
Abercrombie stated it sees fourth-quarter income up 4% to six% from 2020 ranges, or flat to down 2% in contrast with 2019. Previously, 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 firm 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, in keeping with Refinitiv estimates.
The attire retailer stated it has confronted heightened Covid-related impacts and restrictions, with out detailing precisely what these are. Earlier within the day, Lululemon stated its fourth-quarter gross sales are anticipated to return in on the low finish of earlier steering attributable to staffing shortages and shortened retailer hours which were exacerbated in current weeks by omicron.
For the yr, Abercrombie sees gross sales up 19% to twenty% from year-ago ranges. Analysts had been on the lookout for a 21.2% enhance.
The firm additionally stated it is trimming its deliberate capital expenditures for the yr to a spread of $90 million to $95 million, down from $100 million.
Find the complete launch from Abercrombie right here.