Abercrombie & Fitch: reduced FY targets

(CercleFinance.com) - On Thursday US fashion retailer Abercrombie & Fitch reduced its annual sales and margin guidance due to uncertainties surrounding the global economy in H2.


The clothing company said it now expects FY sales to fall by around 5%, significantly below its previous forecasts of growth of between 0% and 2%.

To blame it says are the prospect of weakening consumer demand in the coming months, in addition to rising inflation.

Its operating margin should be between 1% and 3% at the end of the financial year, and not between 5% and 6% as initially expected.

In Q2, to end-July, the company posted an operating loss of two million dollars, compared to a profit of 115 million dollars in the same quarter last year.

Net sales totalled 805 million dollars, down 7%, as sales growth at the Abercrombie brand failed to offset a decline at Hollister.

With these dim forecasts, Abercrombie shares were over 13% in pre-market trading today.



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