Abercrombie & Fitch raised its full-year outlook after it blew past first-quarter sales estimates and extended its bounce back from the teen fashion graveyard.
The retailer now expects net growth to rise around 10 per cent for the year, up from a previous estimate of 4 per cent to 6 per cent, the New Albany, Ohio-based company said in a statement on Wednesday (May 29).
Revenue rose for the sixth straight quarter to US$1 billion. Same-store sales at the Abercrombie namesake brand climbed 29 per cent in the period, compared with an estimate of 17 per cent growth. Hollister’s comparable-store sales were also up 13 per cent, beating estimates of 8 per cent.
The company continues to cater to the rapidly changing tastes of Gen Z and millennial consumers, with expanded offerings spanning wedding attire to office wear. Competitors haven’t been so lucky: VF Corp, the owner of Vans and Timberland, reported a seventh consecutive quarter of falling sales, with a loss in each major brand last week.
Through Tuesday, the company’s stock had risen 73 per cent so far this year, compared with an 11 per cent gain in the S&P 500 Index. BLOOMBERG
