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Abercrombie & Fitch Co. raised its fourth-quarter sales outlook on better-than-expected holiday sales, but the increase wasn’t enough to reassure investors the retailer could keep up the fast pace of growth.
Shares of Abercrombie were down 7.4 percent in Monday premarket trading in New York. The retailer’s shares soared 69 percent last year, compared with a 12 percent gain for the S&P Midcap 400 index.
The New Albany, Ohio-based retailer said it expected fourth-quarter net sales growth to come in around 7 percent to 8 percent, surpassing its guidance in the range of 5 percent to percent. The company increased its full-year net sales growth outlook to around 15 percent from a previous range of 14 percent to 15 percent.
“Following an expected two years of double-digit top and bottom-line growth, I am as confident as ever in the power of our brands and operating model as we move forward,” said chief executive officer Fran Horowitz in a statement.
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Abercrombie made the announcement before presenting at the ICR Conference, taking place this week in Orlando, Florida. The company is scheduled to report fourth-quarter results on March 6.
By Lily Meier
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Abercrombie & Fitch Sales Fall Short of Wall Street Expectations
The retailer reported record net sales of $1.2 billion but saw its shares fall as growth fell short of investor expectations, despite raising its full-year outlook and strong same-store sales.
