Abercrombie & Fitch raised its annual sales forecast on Wednesday after its second-quarter results comfortably beat estimates on strong demand for latest fashion styles at its Abercrombie label and improved assortment at Hollister, sending its shares up nearly 18%, Deborah Mary Sophia reported for Reuters.
Abercrombie has been filling its shelves with a fresh collection of styles, including dressy apparel, knitwear, and cargo pants, while also capitalizing on the demand for new denim silhouettes. I Photo: Abercrombie & Fitch Facebook
Abercrombie has been filling its shelves with a fresh collection of styles, including dressy apparel, knitwear, and cargo pants, while also capitalizing on the demand for new denim silhouettes, as jeans become a post-pandemic workwear wardrobe staple.
The company's tight control over its inventories, which were down 30% at the quarter end, helped it cut back on discounts and markdowns and has also put its brands in a better position for the back-to-school season.
"The consumer is really responding to what we're doing....We really have expanded into a lot of new categories, so this young millennial (consumer) can now wear this brand from work to their weekend getaway," CEO Fran Horowitz said.
Abercrombie's upbeat forecast bucks a gloomy retail tone set by companies in recent weeks, with department store chains Macy's and Kohl's both leaving their annual forecasts unchanged despite quarterly profit beats as consumer spending remains pressured in the US.