Abercrombie & Fitch soars after upbeat holiday sales forecast
US apparel retailer beats analysts’ estimates as sales at established stores rise 3% in the third quarter
Bengaluru/New York — US teen apparel retailer Abercrombie & Fitch forecast same-store sales for the holiday quarter above analysts’ estimates on Thursday, driven by strong sales at its Hollister and flagship stores, sending its shares rising 24% in early trading. “We saw a solid start to the holiday season in November, with strong double-digit growth on Singles Day on Tmall, and a record performance over the peak holiday period from Thanksgiving Day through Cyber Monday,” CEO Fran Horowitz said on a call with investors. Tmall is Alibaba’s giant online marketplace. Horowitz emphasised the steep investments the company has made in better managing its supply chain and product assortment to serve customers faster. Abercrombie has changed its namesake fashion brand in recent years, doing away with risque advertising and logo-emblazoned apparel, which fell out of fashion in the late 2000s. It has relied on Hollister to generate the majority of its revenue as its denim and Gilly Hicks inti...
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