US fashion brand Abercrombie & Fitch has reaffirmed its fourth-quarter of fiscal 2019 guidance on the back of record US Black Friday week revenues.
In a trading update, the company said it continues to expect fourth-quarter net sales to be in the range of flat to up 2%, reflecting an adverse impact from changes in foreign currency exchange rates of about US$5m.
Comparable sales are also forecast in the range of flat to up 2%, against positive comparable sales of 3% last year, while gross profit rate is expected to be down about 150 basis points as compared to fiscal 2018 rate of 59.1%, reflecting a combined adverse impact of 70 basis points from changes in foreign currency exchange rates and anticipated China tariffs.
The guidance comes as CEO Fran Horowitz cited record revenues in the US over Black Friday week, with Hollister setting a new record and momentum at Abercrombie continuing to build, delivering its strongest topline in over five years.
“For the quarter, we expect Abercrombie comps to outperform Hollister and the US to outperform international,” she added. “We remain focused on executing to our key transformation initiatives and will provide an update on our progress when we report fourth-quarter results.”