08/28/2024

Abercrombie & Fitch Lifts Sales Forecast on Trendy Apparel Demand

The lofty expectations hit shares

Abercrombie & Fitch raised its annual sales target on Wednesday after reporting better-than-expected quarterly revenue, but shares of the company fell 14 percent as investors expected a bigger forecast bump from the high-flying retailer.

The stock has surged about 89 percent so far this year after nearly quadrupling in 2023.

"While the market may have been looking for a stronger guidance lift for the year, given momentum across the business, we see a beat and raise as impressive given a moderating top line outlook in response to a choppy macro environment across many of Abercrombie's specialty retail peers," said Dana Telsey, analyst at Telsey Advisory Group.

Please select this link to read the complete article from Reuters.