Prospects exit an Abercrombie & Fitch retailer in San Francisco, California.
David Paul Morris | Bloomberg | Getty Pictures
Abercrombie & Fitch stated Monday that it noticed sturdy demand from shoppers over the vacations however that it did not have sufficient stock to promote, significantly at its Hollister and Gilly Hicks strains.
Shares rose almost 7% in prolonged buying and selling following the discharge, regardless of Abercrombie reducing its steerage 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 Government Fran Horowitz, in a press launch. “Submit-holiday, as stock has landed, we now have skilled an acceleration in gross sales pattern.”
Abercrombie stated it sees fourth-quarter income up 4% to six% from 2020 ranges, or flat to down 2% in contrast with 2019. Beforehand, 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 corporate 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% 12 months over 12 months, 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 come in on the low end of previous guidance due to staffing shortages and shortened store hours which were exacerbated in current weeks by omicron.
For the 12 months, Abercrombie sees gross sales up 19% to twenty% from year-ago ranges. Analysts had been searching for a 21.2% improve.
The corporate additionally stated it is trimming its deliberate capital expenditures for the 12 months to a spread of $90 million to $95 million, down from $100 million.
Discover the complete launch from Abercrombie here.