**Abercrombie Sees Enhanced Demand, Raises Full-Year Outlook**
Shares of Abercrombie & Fitch climbed notably during the after-hours trading session on Thursday as investors cheered the retailer’s upward revision to its full-year financial guidance. The move followed the release of Abercrombie’s quarterly results, which indicated a positive trajectory for the brand.
**Strong Revenue Performance**
For the fiscal fourth quarter, Abercrombie reported net sales of $1.23 billion, representing a 1% increase year-over-year. This increase was driven by comparable sales growth across its Abercrombie and Hollister brands.
In the United States, comparable sales grew by 4%, while international comparable sales remained flat. Notably, the company saw strength in its women’s and accessories categories, partially offset by softness in men’s.
**Boosting Fiscal 2023 Outlook**
Based on its strong performance and positive outlook, Abercrombie revised its full-year guidance for fiscal 2023. The company now anticipates net sales to be in the range of $4.50 billion to $4.55 billion, representing an increase of 1% to 2% compared to the previous forecast.
Comparable sales are expected to increase by 2% to 3%, higher than the previous estimate of 1% to 2%. Gross margin is projected to be around 61%, while operating margin is expected to be approximately 10%. These adjustments reflect Abercrombie’s confidence in its ability to navigate the current retail environment and continue delivering value to its customers.
**Recovery from Pandemic Challenges**
Like many retailers, Abercrombie faced significant challenges during the COVID-19 pandemic. However, the company has shown resilience in recovering from the downturn. By focusing on e-commerce growth, optimizing its store portfolio, and implementing cost-cutting measures, Abercrombie has emerged from the pandemic in a stronger position.
**Growth Plans and Opportunities**
Looking ahead, Abercrombie plans to continue investing in key growth initiatives, including its digital platform, new store openings, and expanding its product offerings. The company sees opportunities in athleisure, sustainability, and personalized customer experiences.
Abercrombie’s CEO, Fran Horowitz, expressed optimism about the future, saying, .
