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.
An Abercrombie & Fitch store in New York – Photographer: Stephanie Keith/Bloomberg
Shares of Abercrombie were down 7.4% in Monday premarket trading in New York. The retailer’s shares soared 69% last year, compared with a 12% 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% to 8%, surpassing its guidance in the range of 5% to 7%. The company increased its full-year net sales growth outlook to around 15% from a previous range of 14% to 15%.
“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.
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.
