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Thursday, 12 January 2023 14:31

Abercrombie boosts Q4 outlook

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Abercrombie & Fitch has boosted its fourth quarter outlook. This is expected to be driven by record demand for women’s apparel.

The retailer of apparel and accessories for men, women and children now expects net sales for the current quarter to be up one per cent to two per cent. The strong momentum seen all year at the Abercrombie & Fitch brand continued in the holiday season with the women’s business on track to deliver its highest fourth quarter sales ever.

This strong performance has been complemented by acceleration in men’s growth from third quarter trends. For its Hollister brand, the firm expects to finish the fourth quarter with sales below where they were during the same quarter last year. Still, it has seen promising trends resulting from changes in both personnel and product assortment.

Abercrombie & Fitch had reported in August that inflation and other economic pressures are affecting brands in different ways, with the Abercrombie brand delivering its best performance in years while Hollister — which is aimed at teens — was seeing a drop due to the impact of inflation and a shift away from its core categories and toward a more fashion-driven product.

Looking ahead, Abercrombie & Fitch will continue to adjust in response to an evolving macroeconomic environment.