Abercrombie & Fitch updated its earnings forecast based on higher than expected sales

Abercrombie & Fitch updated its earnings forecast based on higher than expected sales

US apparel retailer Abercrombie & Fitch has upped its full-year earnings guidance based on higher fourth-quarter sales.

In an update yesterday (10 January), the company said it was updating its earnings forecast based on better than expected sales for the fourth quarter-to-date and ongoing cost reduction efforts.

It now expects full year adjusted non-GAAP earnings per diluted share to be in the range of US$1.55 to $1.65, compared to prior guidance of $1.40 to $1.50.

This updated projection assumes January comparable sales below the quarter-to-date trend reflecting a stronger prior year comparable sales base, it said.

Total comparable sales for the nine weeks ended 4 January, including direct-to-consumer sales, dropped 6% with comparable US sales falling 4%.

Comparable international sales were down 10%, while total direct-to-consumer comparable sales increased 25%.