Abercrombie & Fitch has increased its net sales and operating margin outlook for the fourth quarter and full year of fiscal 2023.
The company’s revised expectations for the fourth quarter’s net sales are in the mid teens, up from the previous projection of low single digit growth, and the operating margin is expected to be approximately 15 per cent, up from the previous estimate of between 12 and 14 per cent.
In contrast to the prior forecast of growth between 12 and 14 per cent, net sales growth for the entire year is predicted to be between 14 and 15 per cent, with an operating margin of 11 per cent. The business had previously projected it to be 10 per cent.
Commenting on the updated outlook, Fran Horowitz, chief executive officer of Abercrombie & Fitch, said, “Consistent with the first three quarters of 2023, our customers responded positively to compelling product assortments and engaging marketing leading us to increase our fourth quarter and full year net sales and operating margin outlook.”
The Hollister brands anticipates fourth-quarter sales growth over the previous year, driven mostly by the women’s segment. The business anticipates that Hollister brands will continue their profitable growth trajectory and significantly increase their fourth quarter gross profit rate thanks to better inventory and product management.
