Updating its outlook, Abercrombie & Fitch Co. said it expects fourth quarter sales to increase in the range of 1 percent to 2 percent compared to the previous outlook of decrease in the range of 2 percent to 4 percent and full year sales to be down around 1 percent compared to the earlier expectation of decrease between 2 to 3 percent.
The company expects full year operating margin in the range of 2.5 percent to 3 percent compared to the previous outlook of in the range of 2 percent to 3 percent and fourth quarter operating margin in the range of mid-to-high 40s.
Commenting on the updated outlook, Fran Horowitz, the company’s chief executive officer, said: “I am pleased with our quarter-to-date performance. Our brands performed well during the peak holiday selling period, delivering sequential sales trend improvement from third quarter levels, leading us to increase our fourth quarter sales and operating margin outlook.”
“For Hollister, while we expect to finish the fourth quarter with sales below 2021 levels, the sales trend improved nicely from the third quarter as we have begun to realise initial benefits from assortment adjustments and personnel changes,” Horowitz added.