Abercrombie & Fitch Co. raised its full-year outlook after it blew past first-quarter sales estimates and extended its bounce back from the teen fashion graveyard.
The retailer now expects net growth to rise around 10 percent for the year, up from a previous estimate of 4 percent to 6 percent, the New Albany, Ohio-based company said in a statement Wednesday. Shares of the retailer were up around 2 percent in premarket trading in New York.
Revenue rose for the sixth straight quarter to $1 billion. Same-store sales at the Abercrombie namesake brand climbed 29 percent in the period, compared to an estimate of 17 percent growth. Hollister’s comparable-store sales were also up 13 percent, beating estimates of 8 percent.
The company continues to cater to the rapidly changing tastes of Gen-Z and Millennial consumers, with expanded offerings spanning wedding attire to office wear. Competitors haven’t been so lucky: VF Corp. the owner of Vans and Timberland reported a seventh consecutive quarter of falling sales, with a loss in each major brand last week.
Through Tuesday, the company’s stock had risen 73 percent so far this year, compared to an 11 percent gain in the S&P 500 Index.
By Lily Meier
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Abercrombie Revenue-Growth Forecast Shows Signs of Slowing
Abercrombie & Fitch Co. offered a full-year revenue-growth forecast that would be a slowdown from the prior year, suggesting that the apparel retailer’s momentum might finally be flagging after a torrid run.