Abercrombie & Fitch raised its annual revenue forecast on Tuesday, betting on robust demand for its Hollister attire and jackets as buyers snap up in-trend attire throughout the essential vacation season.
The corporate’s shares surged practically 18 %, after it additionally forecast a robust vacation quarter and beat third-quarter estimates.
The clothes retailer, whose denim denims promote for $100 on common, has benefited from a robust on-line presence and resilient spending amongst prosperous shoppers regardless of tariff-driven uncertainties.
“The corporate’s success is being pushed by a pointy merchandising technique and a consumer-centric focus, which have enabled it to maximise full-price gross sales and deepen buyer engagement,” stated Rachel Wolff, analyst with Emarketer.
Its Hollister model posted a 15 % like-for-like gross sales progress within the third quarter, helped by the onset of the autumn season and powerful efficiency throughout back-to-school gross sales. Hollister contributes to greater than half of the corporate’s complete gross sales.
“Like Hole and Levi Strauss, Abercrombie is benefiting from the denim growth — and is more likely to proceed doing in order buyers focus their {dollars} on retailers that may provide them a compelling combine of favor and affordability,” Wolff stated.
Abercrombie’s partnerships with world manufacturers akin to Crocs and the NFL have additionally boosted its recognition.
Its Cyber Monday collaboration with Taco Bell is anticipated to herald extra buyers to its shops, executives stated on the post-earnings name.
For the fourth quarter, the retailer forecast gross sales to develop between 4% and 6 % and revenue within the vary of $3.40 to $3.70 per share.
The corporate expects per-share web revenue for fiscal 2025 to be between $10.20 and $10.50, the midpoint of which is increased than its earlier vary of $10.00 to $10.50.
Rival Hole additionally beat quarterly comparable gross sales and revenue estimates final week.
Abercrombie’s web gross sales rose 7 % to $1.29 billion for the quarter ended November 1, in contrast with the $1.28 billion estimate, in keeping with knowledge compiled by LSEG.
Adjusted revenue of $2.36 per share additionally topped expectations of $2.16.
By Prerna Bedi; Editor: Shilpi Majumdar
Study extra:
Abercrombie Shares Surge as Sturdy Demand Drives First-Quarter Beat
Abercrombie & Fitch lowered its annual revenue forecast regardless of beating first-quarter estimates and forecasting robust annual gross sales.
