Abercrombie & Fitch stock rises more than 6% after retailer's outlook

abercrombie-&-fitch-stock-rises-more-than-6%-after-retailer's-outlook

Abercrombie & Fitch Co. ANF, -2.53% shares jumped more than 6% late Monday after the retailer said it expects fiscal 2021 net sales to be between 19% and 20% higher than its 2020 net sales of $3.13 billion, and up between 2% and 3% compared with 2019 net sales. Abercrombie tweaked its fiscal 2021 fourth-quarter sales expectations, however, thanks to “additional unexpected and uncontrollable inventory receipt delays and increased COVID-related impacts and restrictions.” It expects net sales up in a range between 4% and 6% compared to 2020 net sales of $1.1 billion, and flat to down 2% as compared with 2019 net sales. The prior outlook called for sales up between 3% and 5% as compared to 2019. The retailer called for a flat gross profit rate as compared to 2019, in line with its previous outlook, as fewer promotions and markdowns were offset by rising freight and related costs. Shares of Abercrombie & Fitch ended the regular trading day down 2.5%.

Source: Marketwatch

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