Sales are increasing more than expected, while competitors are experiencing a decline on the sales.
One of the most beloved and famous American brands of the 2000s, Abercrombie & Fitch Co. increased its full-year sales forecast after exceeding first-quarter expectations and is continuing its comeback.
The company, based in New Albany, Ohio, now predicts annual growth of about 10%, up from the previous estimate of 4% to 6%. The retailer’s shares increased around 2% in premarket trading in New York.
Revenue increased for the sixth straight quarter to $1 billion. Sales at Abercrombie stores grew 29%, beating the expected 17% increase. Hollister’s sales rose by 13%, surpassing the 8% estimate.
The company successfully appeals to Gen-Z and Millennial customers by expanding its product range to include wedding and office wear. Meanwhile, competitors like VF Corp., owner of Vans and Timberland, reported a seventh consecutive quarter of declining sales.
Up to Tuesday, Abercrombie’s stock had risen 73% this year, compared to an 11% rise in the S&P 500 Index.
So, will Abercrombie come back? Hopefully, yes!
