Apparel retailer Abercrombie & Fitch Co forecast holiday-quarter net sales declined between 5 to 7 per cent indicating that even strong online demand was not enough to help the company stay afloat after it suffered a blow from temporary store closures and Covid-19 restrictions.
According to IBES data from Refinitiv, the company, which owns the Hollister apparel brand, had previously estimated net sales decline between 5 and 10 per cent for the quarter, with analysts expecting a 5.5per cent fall. Abercrombie also stated it expected fourth-quarter gross profit rate to be up at least 130 basis points, compared to last year’s 58.2 per cent as it discounted less.
Online demand for activewear and loungewear has soared since the start of the lockdowns, but in-store sales have taken a hit as a resurgence in Covid-19 cases in North America and major European markets forced governments to reintroduce certain restrictions.
