Abercrombie & Fitch Co projects, the company’s full-year revenue growth will surpass Wall Street estimates as demand for its apparel brands remains robust on account of a successful holiday shopping season and a promising start to spring in the United States.

Apparel retailers like Abercrombie and Lululemon Athletica have reaped the rewards of inventory management efforts and the introduction of new styles during the holiday period. Abercrombie, in particular, emphasised its increased marketing efforts and investments in digital and in-store experiences to attract customers, strategies it intends to maintain throughout the year.

Abercrombie anticipates, surpassing marketing expectations, first-quarter net sales will grow in low double digits, on account of positive reactions to its spring collection. While reduced discounts and lower shipping and raw material costs, such as cotton, have boosted Abercrombie's margins, potential increases in shipping costs in the second quarter and beyond due to the Red Sea conflict could offset some gains.

For fiscal year 2024, Abercrombie forecasts net sales growth of 4 per cent to 6 per cent, exceeding the LSEG estimate of 4 per cent growth to $4.43 billion. Analyst Dana Telsey, Telsey Advisory Group remarks, A&F brand remains robust with a resilient customer base and compelling assortment. It has the potential to further expand its margins through digital growth.

Surpassing analysts’ expectations, Abercrombie’s fourth-quarter revenue grew to $1.45 billion.