Abercrombie & Fitch reaffirms Q4 guidance after record Black Friday week
today Jan 13, 2020
Teen-focused American fashion retailer Abercrombie & Fitch Co. announced on Monday that, having achieved record revenues in 2019’s Black Friday week, it is confirming its previously reported financial outlook for the fourth quarter.
The New Albany, Ohio-based company did not provide specific figures concerning its sales during Black Friday week, which runs from the Tuesday before Thanksgiving through Cyber Monday, but affirmed that it had seen record revenues in the U.S. over the period.
According to the company, its Hollister banner performed particularly well, setting a new record, while its namesake Abercrombie & Fitch brand continued to build momentum, seeing its strongest top line in more than five years.
In light of these results, the retailer stated that it still expects net sales in Q4 to be flat or rise up to 2%, as growth is hampered by changes in foreign currency exchange rates, developments predicted to have an adverse impact of around $5 million.
Comparable sales for the period are also expected to be in the range of flat to up 2%, compared to the positive comparable sales of 3% reported by Abercrombie & Fitch in the same period in the previous year.
The company’s gross profit rate is predicted to be down by around 150 basis points from the prior year’s rate of 59.1%, as both changes in foreign currency exchange rates and increased tariffs on goods imported from China take their toll.
“We are pleased to reaffirm our fourth quarter outlook,” said Abercrombie & Fitch CEO Fran Horowitz in a release. “For the quarter, we expect Abercrombie comps to outperform Hollister and the U.S. to outperform international. We remain focused on executing to our key transformation initiatives and will provide an update on our progress when we report fourth quarter results.”
The company has trimmed its annual sales forecast twice since August 2019, citing the expected impact of new tariffs and the underperformance of its international business.
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