- Prachi Singh |
Abercrombie & Fitch Co. has reaffirmed its previously issued outlook for the fourth quarter of fiscal 2018. Driven by the loss of fiscal 2017's 53rd week and adverse impacts from both the calendar shift and changes in foreign currency exchange rates, net sales are expected to decrease mid-single digits, comparable sales to be up low-single digits on top of 9 percent last year.
Commenting on the update, Fran Horowitz, the company’s Chief Executive Officer, said in a statement: “We were pleased with our performance in the competitive holiday season. We remain on track to deliver a low-single digit comp for the fourth quarter, representing our sixth consecutive quarter of positive comparable sales. For the full year, we remain on track to deliver top-line growth including over 1 billion dollars in digital sales, gross profit rate expansion and operating expense leverage."
The company expects , a gross profit rate flat to up slightly from last year's rate of 58.4 percent and GAAP operating expense, excluding other operating income, to be down in the range of 1 percent – 2 percent from last year's adjusted non-GAAP operating expense of 561 million dollars.
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