The Clap
Abercrombie & Fitch (NYSE:ANF) increased its net sales forecast following a busier-than-expected holiday season.
What
The company expects net sales to increase between 1% to 2% in the fiscal Q3, after previously forecasting a 2% to 4% decline.
The company was under pressure with inventories piling up due to changing consumer spending habits.
A&F had been revamping its inventories to get rid of casual wear and athletic leisure, in addition to bringing in new styles that brought in wealthier shoppers.
So What
There was a general improvement in sales during Q3, which led the company to project a Q4 operating margin between 6% – 8%.
Now What
Despite an improved forecast, A&F still expects sales from its Hollister brand to remain below 2021 levels.
