Abercrombie & Fitch raises Q4 and full year sales outlook
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Abercrombie & Fitch has increased its net sales and operating margin outlook for the fourth quarter and full year of fiscal 2023.
The company now expects fourth quarter net sales to be up high-teens against previous outlook of low-single digits growth, operating margin to be around 15 percent compared to earlier estimate of in the range of 12 to 14 percent.
Net sales growth for the full year is estimated in the range of 14 to 15 percent compared to the previous outlook of growth between 12 to 14 percent and operating margin is expected to reach 11 percent. Earlier, the company estimated it to reach 10 percent.
Commenting on the updated outlook, Fran Horowitz, chief executive officer of Abercrombie & Fitch, said: “Consistent with the first three quarters of 2023, our customers responded positively to compelling product assortments and engaging marketing leading us to increase our fourth quarter and full year net sales and operating margin outlook.”
“We expect to deliver fourth quarter net sales growth across regions led by continued strength in the Americas. Each of our brands continued to deliver solid sales growth led by Abercrombie brands. The Abercrombie & Fitch women's business is expected to achieve its highest-ever fourth quarter sales complemented by an acceleration in men's growth,” Horowitz added.
At Hollister brands, the company expects to deliver year-over-year fourth quarter sales growth led by the women's business. Continuing a trend of profitable growth, the company expects Hollister brands will also achieve significant fourth quarter gross profit rate expansion, enabled by improved product and inventory management.